PNB Housing Finance has received approval from its board of directors to raise Rs 5,000 crore in bonds on private placement basis. “The Board of Directors of PNB Housing Finance Limited has interalia approved issuance of Non-Convertible Debentures in tranches aggregating up to Rs 5,000 Crore on private placement basis,” the company said in a regulatory filing.
This is the second fund raising by the company this fiscal year. In April, PNB Housing raised Rs 2,494 crore through rights issue of shares. The issue closed on April 27, 2023, it had said in a statement. PNB Housing planned to utilise the proceeds from the issue towards augmenting its capital base. In March, PNB Housing had received Sebi’s nod to raise up to Rs 2,500 crore through rights issue of shares. The housing finance company had filed draft papers with Sebi in December 2022 regarding the rights issue and had obtained the ‘observations’ on March 6.
In May 2021, PNB Housing was looking to raise equity capital worth Rs 4,000 crore from US-based Carlyle group-led group of investors. However, in October 2021, it terminated the Rs 4,000 crore deal due to pending legal proceedings. It had said that the proposed preferential issue was held up for over four months, after already having taken over two years, due to the pending legal proceeding before the Securities Appellate Tribunal (SAT) and there was no visibility or certainty on the timeline for judicial determination of the legal issues.
PNB Housing recently declared its fiscal fourth quarter results. The company posted an almost 65 per cent jump in profit for the quarter ended March 2023, led by increased demand for housing loans. It reported a consolidated net profit of Rs 279 crore for the quarter as against Rs 170 crore in the same quarter last year. Its net interest margin stood at 3.74 per cent, while net interest income expanded 57 per cent to Rs 593 crore.