PNB Housing shares tank 8% amid heavy turnover; here's likely seller

Shares of PNB Housing Finance Ltd tumbled nearly 8 per cent in Wednesday's trade amid huge turnover on NSE, as existing shareholder Quality Investment Holdings PCC likely offloaded 9.43 per cent stake in the housing finance company (HFC) today.

The stock fell 7.62 per cent to hit a low of Rs 908.15 on NSE. A total of 2.68 crore shares worth Rs 2,517.41 crore changed hands. On BSE, 65.11 crore PNB Housing shares changed hands. Despite today's fall, the PNB Housing stock is up 16 per cent in 2024 so far and 17 per cent in the past one year.

Quality Investment Holdings PCC was looking to sell about 2.45 crore shares at an offer price of Rs 939.30 per share, sources privy to the developments told CNBC-TV18. 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 was said to be subjected to a 60-day lock-in period.

Morgan Stanley was said to be appointed as the banker to manage the deal.

PNB Housing Finance’s Q2 profit grew 23 per cent YoY at Rs 471 crore against Nirmal Bang's estimate of Rs 463 crore, led by higher other income and lower provisions. Q2 disbursements grew strong at 28 per cent YoY and Nirmal Bang is building in a growth of 17 per cent in FY25 driven by EM segments. NIM is seen sustaining at 3.5 per cent, supported by growth in high-yield segments, while Opex is expected to stay elevated as the company opens new branches.

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.