Why PNB Housing Finance share hit upper circuit today

PNB Housing Finance share ended 20% higher today after the firm's board approved a proposal to raise up to Rs 4,000 crore by issuing equity shares and convertible warrants to entities led by PE firm Carlyle Group and Aditya Puri's Salisbury Investments.

The stock touched an intraday high of Rs 525.2, rising 19.99%. It closed at the same level on BSE. Market cap of the firm rose to Rs 8,837 crore on BSE. The stock has risen 30.02% in the last 4 days.

Total 0.96 lakh shares changed hands amounting to turnover of Rs 4.76 crore on BSE. Market cap of the firm rose to Rs 8,837 crore on BSE. PNB Housing stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 198% in one year and risen 44.13% since the beginning of this year.

The board has approved a preferential allotment on a private placement basis, an aggregate of 8,20,51,281 equity shares and 2,05,12,820 warrants exchangeable into equity shares at a price of Rs 390 per share warrant to Pluto Investments, Salisbury Investments, General Atlantic Singapore Fund FII Pte Ltd and Alpha Investments V Pte. Ltd in specified proportions for cash consideration aggregating to approximately Rs 4,000 crore, the company said.

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PNB Housing Finance said Pluto Investments, an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P. (together Carlyle) has agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants at a price of Rs 390 per share.

Existing shareholders of the company, the funds managed by Ares SSG and General Atlantic are also participating in the capital raise, the company said.

PNB Housing Finance said as part of this transaction, Salisbury Investments, the family investment vehicle of Aditya Puri, senior advisor for Carlyle in Asia and the former CEO and MD of HDFC Bank, will also invest.

Aditya Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee Director in due course, the company said.