PNB Housing posts biggest intraday loss in over 2 months

BL Internet Desk May 8 | Updated on May 08, 2018 Published on May 08, 2018

PNB Housing Finance Ltd shares fell nearly 7 per cent to Rs 1,280, its biggest daily percentage loss in over 2 months.

Shares of PNB Housing Finance fell as Quality Investment Holdings, an arm of the global private equity giant Carlyle, is selling 80 lakh shares of PNB Housing Finance, translating into about 4.8 per cent of its equity, for around Rs 1,040 crore ($153 million) through block deals.

According to the term sheet for the deal, the stake sale is being offered at Rs 1,280 per share — about 7 per cent discount to PNB Housing Finance’s Monday close on the BSE at Rs 1,374.

PNB Housing Finance Ltd shares fell nearly 7 per cent to Rs 1,280, its biggest daily percentage loss in over 2 months. More than 5.7 million shares traded as of 0354 GMT, over 42 times their 30-day moving average. The stock has risen 2.5 per cent this year up to Monday.

Prior to the sale, Carlyle owned 37.16 per cent stake in PNB Housing Finance.

The stake is being sold through the accelerated book-building method, for which Morgan Stanley and Citibank are joint book runners.

After the deal, Carlyle will hold about 32.5 per cent stake in the housing finance company, with public sector lender Punjab National Bank which has 60.3 per cent stake.

In early 2015, Carlyle had bought a 49 per cent stake — for about $200 million — in PNB Housing, which came to it through the buyout of Destimoney Enterprises, that was holding the stake for PE firm New Silk Route.

At the expected block deal price of $153 million for the 4.8 per cent stake, the remaining 32.5 per cent stake still with Carlyle is worth a little over $1 billion.

(With inputs from Reuters)

Published on May 08, 2018

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