PNB Housing Finance Limited

275 Per Share Rights Issue Approved By PNB Housing Finance Ltd

Established in 1988, Punjab National Bank’s subsidiary PNB Housing Finance Limited, is a housing loan provider to people and offers financial solutions for construction, repair, and modernisation. On April 13, 2023, the PNB Housing Finance Limited board announced its plans to raise funds up to Rs 2,500 crore by a rights issue of approximately 9.06 crore shares worth a price of  Rs 275 per share. As per the company policies, the entitlement ratio is 29:54. Under this, 29 equity shares would be issued for every 54 equity shares owned by any shareholder on the record date.

Financials Of The Company

PNB Housing Finance Limited’s net profit spiked by 43% to Rs 269 crores in the third quarter of FY23, driven by the company’s massive growth.  Furthermore, the company’s net interest income also surged by 67% to Rs 734 crores in the same quarter. With impressive stats, the net income of the fintech firm rose to Rs 1,713.64 crore, which earlier was Rs 1,411.24 crore. 

Revenue5,489 7,683 8,4907,624 6,201
Expenses718.03 782.341,8031,314 1,052
EBIT4,747 6,870 6,6216,2525,095
Profit Before Tax1,2351,734 811.011,2071,084
Net Profit841.151,192 646.24 929.90 836.48
Net Profit Margin15.33%15.51%7.61%12.20%13.49%
Operating Profit Margin86.92%89.82%78.76%82.77%83.03%

All the data listed in the above table is in crores. The company’s net profit also spiked in 2019 and decreased to half in 2020. However, the company bounced back and started growing again. PNB Housing Finance Limited’s amazing financial stats make it a worthy investment choice, as the shares are continuously surging. At the beginning of April, PNB Housing Finance Limited unlisted shares rose by 4% as Morgan Stanley saw shares up 32%. Investors are advised to leverage this excellent opportunity by investing in the financial firm’s shares and earning potential returns.

PNB Housing Finance Rights Issue Detail

All the significant details about PNB Housing Finance Rights Issue are mentioned below – 

Security name PNB Housing Finance Limited
Issue openApr 13, 2023 – Apr 27, 2023
Issue size (shares)90,681,828 shares
Issue size (amount)₹ 2,493.76 crores
Issue price₹ 275 per share
Face value₹ 10 per share
Listing atBSE, NSE
Terms and conditions of paymentAs per the rules, the whole amount of the issue price ₹ 275 per rights equity share should be paid during the application.
Entitlement 29 equity shares would be issued for every 54 equity shares owned by an individual on the record date.

As per the company’s announcement, the rights issues will stay open from Apr 13, 2023, to Apr 27, 2023.  The precise issue amount stated by the company is worth ₹ 2,493.76 crores, and shares will be sold at a price of ₹ 275 per share, including a price of ₹ 265 per share. According to the terms and conditions of the company, the entire issue price amount of ₹ 275 per share should be paid during the application. 

Based on the entitlement, 29 equity shares would be issued for every 54 equity shares owned by an individual on the record date. PNB Housing Finance Limited reported that in advance of the rights issue, the total number of fully paid equity shares would be 16,88,55,818; after the rights issue, the total number of fully paid equity shares will rise to 25,95,37,646, as stated by the company.

PNB Housing Finance Rights Issue Timetable

The following table depicts the PNB Housing Finance rights issue timetable in a detailed manner.

Last date to buy sharesApril 3, 2023
Record dateApril 5, 2023
The credit of rights entitlementsApril 12, 2023
Bid/Offer opening dateApril 13, 2023
Renunciation of rights and entitlementsApril 24, 2023
Bid/Offer closing dateApril 27, 2023
Deemed date of allotmentMay 12, 2023
Credit dateMay 15, 2023
Listing dateMay 17, 2023

PNB Housing Limited already stated that the last day to buy shares is April 3, 2023, and the record date is April 5, 2023. Moreover, the expected date of allotment is May 12, 2023, and the credit date is May 15, 2023.

Should I Invest In PNB Housing Finance Limited?

The share prices of PNB Housing Finance Limited are continuously increasing, and investing in its shares can be the wisest decision that you can make as an investor. The constant increase in revenue and share price makes it a perfect opportunity for investors to benefit from it. If you wish to make your investment journey risk and hassle-free, you can use Stockify, which is the best online brokerage platform to buy unlisted shares in India.