PNB Housing Finance Ltd experienced a significant decrease in its stock value, dropping by almost 7% following a substantial equity trade. Approximately 5.2% of the company’s equity was transferred in a single transaction, resulting in the stock plummeting by as much as 6.55% to Rs 785 per share on the NSE.
Reports indicate that a total of 13.6 crore shares were exchanged at Rs 773 per share, amounting to over Rs 10,512 crore. Foreign portfolio investors, Asia Opportunities V (Mauritius) Ltd. and General Atlantic Singapore Fund FII Pte, were identified as the probable sellers in this major trade, with the floor price set at an 8% discount to the previous closing price of Rs 840 per share. BNP and UBS acted as joint placement agents for the stake sale.
Furthermore, it was disclosed that Asia Opportunities and General Atlantic had also divested a significant number of PNB Housing Finance shares on May 29, indicating a substantial change in the company’s shareholding.
In response to these significant transactions, the stock of PNB Housing experienced a decline, trading 4.55% lower at Rs 801.75 per share as of 9:56 a.m. This decrease is notably higher when compared to the benchmark Nifty’s 0.16% drop during the same period.
Despite the recent downturn, PNB Housing’s share price has demonstrated resilience over the past year, with a 36% increase in the last 12 months and a 2.7% rise year-to-date. However, the current trading volume has surged to 23 times its 30-day average, indicating heightened activity and interest in the company’s shares.
Analysts monitoring the company hold varied opinions, with nine out of 11 recommending a ‘buy’ rating, while the remaining two suggest a ‘sell’. On average, analysts anticipate a potential upside of 14.4% based on the 12-month price targets.
The developments surrounding PNB Housing Finance have undoubtedly stirred interest and concern within the investment community, as stakeholders closely monitor the implications of these large trades on the company’s future performance.