Shares of
PNB Housing Finance surged over 7 percent on Wednesday after the board of Punjab National Bank (PNB) approved infusing Rs 500 crore into the company. PNB will invest the amount by participating in the rights issue of PNB Housing Finance.
The shares of PNB Housing Finance, however, pared gains and closed 4 percent higher at Rs 343 per share on the BSE. The stock has been gaining for the last four sessions.
Today's share price performance of PNB Housing Finance
In the past one year, the stock has fallen close to 60 percent whereas year-to-date, the scrip is down 30 percent.
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“...the Exchange is hereby informed that upon receipt of RBI approval, the Board of Directors has approved Bank's participation in the proposed Rights Issue of PNB Housing Finance Limited (PNBHFL) for an amount up to about Rs 500 Crore, in order to retain Bank's shareholding at 30 percent or below but above 26 percent,” the housing finance company said in an exchange filing.
A shareholding above 26 percent will help Punjab National Bank retain its status as the promoter of PNB Housing Finance.
Separately, the board of PNB Housing Finance will meet on June 13 to consider and approve the issuance of non-convertible debentures aggregating up to Rs 2,000 crore on a private placement basis.
