Just hours after media reports said that India’s largest mortgage lender HDFC is competing to acquire a controlling stake in PNB Housing Finance, HDFC CEO Keki Mistry said that the firm is not looking for picking up any controlling stake.
Just hours after media reports said that India’s largest mortgage lender HDFC is competing with Kotak Mahindra Bank to acquire a controlling stake in PNB Housing Finance, HDFC CEO Keki Mistry said that the firm is not looking for picking up any controlling stake, Reuters reported. Notably, the shares of PNB Housing Finance rose by more than 10% to hit an intraday high of Rs 1,224. This is the stock’s biggest intraday gain in the last four months.
Earlier, news reports said citing sources that Housing Development Finance Corp and Kotak Mahindra Bank are competing for a controlling stake in PNB Housing Finance as they aim to gain wider coverage in a mortgage market that’s seen among the safest of havens in the lending world. According to a report in the Economic Times, promoters Punjab National Bank and Carlyle, which together own about 66% of the company, are looking to sell their stake to a large investor.
HDFC and Kotak Bank met with the management of PNB Housing Finance last week to discuss buying out private equity fund Carlyle’s entire stake of around 33 per cent and another 33 per cent on the block from PNB, the newspaper reported. PNB Housing Finance a market capitalisation of more than Rs 17,900 crore.
HDFC shares were trading 0.7% down to Rs 1,886 on Monday morning. Meanwhile, shares of Kotak Mahindra Bank were trading at about 0.7% up at Rs 1,329 on NSE. PNB Housing Finance has reported a 44% on-year rise in profit after tax during the fourth quarter of the financial year on the back of robust loan demand, improvement in interest margin and lower operating expenses. During the quarter ended March-18, the company reported a profit after tax of Rs 219.2 crore against Rs 152.4 in the same period a year ago.