Block deal today: PNB Housing Finance shares in focus as shareholder may sell 9.43% stake

Shares of PNB Housing Finance Ltd are in focus in Wednesday's trade amid a media report suggesting shareholder Quality Investment Holdings PCC is looking to offload a 9.43 per cent stake in PNB Housing Finance today. As per the report, Quality Investment Holdings PCC may sell about 2.45 crore shares at an offer price of Rs 939.30 per share, sources privy to the developments told CNBC-TV18.

The reported offer price suggests a discount of 4.25 per cent to the stock's Tuesday closing price on stock exchanges.

As per the CNBC-TV18 report, Morgan Stanley has been appointed as the banker to manage the deal.

Quality Investment held 5,16,24,311 shares or 19.87 per cent stake in the housing finance company as on September 30. The deal will be subjected to a 60-day lock-in period.

PNB Housing Finance’s revamped business strategy of ‘retailisation’, focusing on scaling the retail mortgage business, is progressing well, ICICI Securities said in October note. The HFC reported 4 per cent sequential growth in retail loans in Q2 and share of affordable and emerging market segments accounted for 31 per cent of retail disbursement for the quarter.

Notably, incremental yields across retail products continued to exhibit an improving trend, evident in over 10 bps QoQ increase in Prime, over 20 bps QoQ in emerging markets and over 35 bps QoQ in affordable segment.

ICICI Securities said nearly 70 per cent floating rate borrowing (bodes well during falling rate cycle), rising share of high yielding emerging and affordable segments and steady increase in disbursement yield would ensure PNB Housing maintaining NIM at 3.65 per cent against its guided range of 3.5 per cent for FY25.