General Atlantic, Asia Opportunities V Divest 4.46% Stake in PNB Housing for Rs 843 Cr

In a significant move within the financial sector, Asia Opportunities V Mauritius and General Atlantic have collectively sold a 4.46 per cent stake in PNB Housing Finance, fetching a total of Rs 843 crore through open market transactions. This divestment by the US-based private equity firm General Atlantic and its affiliate, General Atlantic Singapore Fund FII Pte Ltd, was executed on the Bombay Stock Exchange (BSE).

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The transaction involved the sale of 58 lakh shares by each party, culminating in a combined stake sale of 4.46 per cent in the housing finance company. The shares were sold at a price range between Rs 727.26 and Rs 727.47 each, bringing the total deal size to approximately Rs 843.79 crore.

Following this transaction, as per the latest shareholding data available with the BSE as of March 2024, Asia Opportunities V Mauritius Ltd now holds a 9.88 per cent stake in PNB Housing Finance, while General Atlantic Singapore Fund FII Pte's stake stands at 9.82 per cent.

On another front, Societe Generale emerged as a significant buyer in this transaction, acquiring 13.08 lakh shares at an average price of Rs 724.55 per share, which translates to a deal value of Rs 94.82 crore. The details regarding other buyers remain undisclosed.

The market response to these transactions was notable, with shares of PNB Housing Finance experiencing a decline of 6.69 per cent to close at Rs 735.85 apiece on the BSE.

Earlier this year, in January, Asia Opportunities V Mauritius made headlines by acquiring a 9.88 per cent stake in PNB Housing Finance for Rs 2,105.86 crore. This move underscored the foreign investor's growing interest in India's housing finance sector.

Moreover, PNB Housing Finance recently reported a substantial increase in its net profit for the fourth quarter ended March 2024. The company announced a 57 per cent rise in net profit to Rs 444 crore, up from Rs 283 crore recorded in the same quarter of the previous year. The total income for the quarter also saw an uptick, reaching Rs 1,806 crore compared to Rs 1,628 crore in the corresponding quarter of the last fiscal year. Notably, the interest income for Q4FY24 stood higher at Rs 1,684 crore against Rs 1,581 crore in the same period a year ago.

This series of transactions and financial results highlight the dynamic nature of India's housing finance sector and underscore the strategic moves by major stakeholders within this space.