PNB Housing Finance share rises 2% on fund raising plans

Shares of PNB Housing Finance defied the muted broader market trend and surged over 2% in morning trade on Wednesday after its board approved fund raising plan. The housing finance company in an exchange filing said that its board has approved the issuance of non-convertible debentures aggregating up to ₹2,000 crore on a private placement basis.

“The board of directors of the company held today i.e. Tuesday, June 14, 2022, commenced at 03:00 P.M. and concluded at 05: 20 P.M. and approved issuance of non-convertible debentures aggregating up to ₹2,000 crore on private placement basis,” PNB Housing Finance said in an exchange filing on Tuesday.

Snapping three sessions of losing streak, shares of PNB Housing Finance opened higher at ₹345 against the previous closing price of ₹343.70 on the BSE. In the first hour of trade so far, the stock gained as much as 2.4% to hit a high of ₹351.90. The stock price traded 10% higher than its 52-week low of ₹312 touched on May 12, 2022, while it is down 57% against its 52-week high of ₹794 on July 12, 2021. Meanwhile, the BSE Sensex was trading 58 points lower at 52,635 levels at the time of reporting.

Technically, the stock traded in a bearish range, moving higher than 20-day moving averages but lower than 5-day, 50-day, 100-day, and 200-day averages. PNB Housing Finance shares rose nearly 1% in a week and 4% in a month, while it dropped 29% since the calendar year 2022. The stock has given negative returns of 53% in the last one year, while it fell 37% during the last six months.

The board of PNB Housing Finance also approved employee stock ownership plan (ESOP III) scheme and Restricted Stock Unit (RSU) Scheme 2022 to raise funds, subject to the approval of its shareholders. Under the ESOP scheme, "The maximum number of Options that may be issued pursuant to the scheme shall not exceed 20,00,000 Options in number which will be convertible into the equal number of equity shares," it said in a BSE filing.

Under the RSU scheme, the company intends to issue a maximum number of stock units not exceeding 8,50,000 which will be convertible into an equal number of equity shares.

Besides, the board also approved an amendment to the existing Employee Stock Ownership Plan (ESOP) 2016 to authorise nomination and remuneration committee in relation to the vesting terms at the time of grant of options, subject to the approval of shareholders.