pnb housing finance shares: Carlyle likely sells stake in PNB Housing Finance via block deal

Shares of PNB Housing Finance were in the spotlight in Tuesday’s early trade after 13.1% equity of the company changed hands in a block deal in which US-based private equity firm Carlyle is believed to be the seller.

Carlye had upsized the size of the block deal to Rs 2,511 crore or 12.8% of equity at a floor price of Rs 755, ET Now reported. Earlier it was reported that the PE firm will sell up to a 6.4% stake in the company through an open market transaction.

Following the large deal, PNB Housing Finance shares were trading 1.5% lower at Rs 782.5 on BSE. The stock has grossly underperformed so far this year and is flat on a year-to-date basis as compared to a 13% rise in the benchmark Sensex. As of June 30, 2024, Carlyle held a 32.68% stake in the housing finance company.

In the June quarter, the company’s net profit increased by 25% year-on-year (YoY) and declined by 1.5% quarter-on-quarter (QoQ) to Rs 433 crore while net interest income grew by 4% YoY and 3% QoQ to Rs 651 crore.

Its net interest margin stood at 3.65% in Q1 FY25 as compared to 3.65% in Q4 FY24 and 3.86% in Q1 FY24. The management has given a long-term NIM guidance of over 3.5%.Domestic brokerage firm ICICI Securities maintained a buy call on the stock with an unchanged target price of Rs 1,010, valuing the stock at 1.5x PBV Sep’25E BVPS.”PNB Housing Finance’s revamped business strategy of ‘Retailization’ with a focus on scaling retail mortgage
business (prime + emerging + affordable) is progressing well as reflected in 3% QoQ growth in retail loans (despite

seasonality) with share of affordable and emerging market segments accounting for 33% of retail disbursement during Q1FY25,” ICICI Securities said.