PNB Housing Secures Rs 2,494 Crore Through Rights Issue

PNB Housing Finance Limited (PNBHFL) has successfully raised Rs 2,494 crore through its recent rights issue. According to a statement released by PNB Housing Finance, the rights issue concluded on April 27, 2023.

The company plans to utilize the net proceeds from the issue to boost its capital base. As a result of the rights issue, PNB's shareholding in the company as a promoter will decrease from the current level of 32.53% to below 30%, but will remain higher than 26% to retain promoter status.

The board of PNB Housing approved the Rs 2,500-crore rights issue in March 2022, and the draft letter offer was cleared by the Securities and Exchange Board of India (Sebi) in November of the previous year. PNB Housing had aimed to raise equity capital worth Rs 4,000 crore and had entered into a deal with Carlyle Group, among other investors, in May 2021.

However, in October 2021, the mortgage lender decided to cancel the Rs 4,000 crore stake sale due to delays caused by pending legal proceedings.