A prominent player in the Indian housing finance sector saw a significant movement in its stock price on November 13. The company’s shares dropped by 8.39% to ₹904.50 after a major block deal took place.
In the transaction, Quality Investment Holdings sold 9.43% of its stake, amounting to 2.45 crore shares, valued at ₹2,300 crore. The shares were sold at ₹939.3 each, signalling a notable shift in ownership.
Share Price Movement
The share price of PNB Housing Finance went down by 5.66 percent to Rs. 927.55 per share on Wednesday, a decrease from its previous close of Rs. 983.15 per share. The market capitalisation now stands at approximately Rs. 24,101 crore as of November 13, 2024.
What Happened
Shares of PNB Housing Finance fell by as much as 8.39% to ₹904.50 on November 13, following a block deal of 2.5 crore shares (9.5% equity) worth ₹2,300 crore. Quality Investment Holdings plans to sell a 9.43% stake, totalling 2.45 crore shares, at ₹939.3 per share. Post-transaction, Quality Investment, holding a 19.87% stake, will face a 60-day lock-in period.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, PNB Housing Finance’s GNPA has decreased to 1.27 percent YOY from 1.74% percent. Furthermore, QoQ GNPA has decreased by 0.12 percent from 1.39 percent from Q1 FY24.
The company’s asset under management has increased 10.8% YoY and 3.0% QoQ to Rs. 74,724 crore. The company has a net interest income of Rs. 634 crore in Q2 FY25, an increase of 12.5% from Rs. 563 crore in Q2 FY.
The company’s net NPA has decreased to 0.84 percent YOY from 1.19% percent. Furthermore, QoQ Net NPA has decreased by 0.08 percent from 0.92 percent from Q1 FY24.
Also read….
Market Outlook
The Indian housing finance sector shows strong growth potential, particularly in affordable housing. Housing finance companies (AHFCs) are performing well with robust growth and lower risk compared to regular housing finance companies. In FY24, residential sales in the top seven cities increased significantly to 4.76 lakh units from 3.64 lakh units in FY23. New project launches also grew to 4.45 lakh units. The sector is expected to grow by 12-14% in FY24, supported by favourable demographics, a housing shortage, and government initiatives like “Housing for All.”
Shareholding Pattern
As of the November 2024 shareholding pattern, PNB Housing Finance Limited is primarily held by the promotors at 28.11 percent, foreign institutional investors hold 20.42 percent, and the public with 29.29 percent.
About Company
PNB Housing Finance Limited, established in 1988, is a prominent non-banking financial company (NBFC) based in New Delhi, India. Promoted by Punjab National Bank, it is one of the country’s leading housing finance companies.
The company offers a range of financial products, including housing loans, loans against property, and affordable housing options through its “Roshni” initiative. It ranks among the top five housing finance firms in India with a diverse loan portfolio, comprising retail housing loans, construction finance, and loans against property. With over 102 branches across 62 cities, PNB Housing Finance continues to expand its customer reach.
PNB Housing Finance’s strong performance is reflected in its low non-performing asset (NPA) ratio of 0.48%. With a focus on affordable housing and a customer-first approach, the company is poised for growth. Its leadership and robust portfolio quality position it for continued success in India’s competitive housing finance market.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
