PNB Housing Finance Spurts 12% Ahead Of Board Meet For Fund Raising

Shares of PNB Housing Finance jumped over 12% in intra-day trade on August 18, 2020 to day's high price of Rs. 270.6 per share on the BSE. The gains in the stock price have come as the board of the housing finance major is scheduled to meet tomorrow for considering fund raising.

Since March's 52-week low price of Rs. 146 hit on March 26, 2020, the stock has zoomed as much as 84% in comparison to Sensex's rally of 28% during the same period.

On August 14, 2020 the company made an announcement that its board will meet on Wednesday i.e. August 19, 2020 to deliberate on fund raising. " A meeting of the Board of Directors of PNB Housing Finance Limited (the "Company") is scheduled to be held on Wednesday, August 19, 2020 to consider fund raising by the Company, and the mode thereof, by issue of Equity Shares and/or other securities through any permissible modes, as may be considered appropriate, subject to such approvals as may be required," the company had said to exchanges in a filing.

Additionally, on July 31, 2020, promoter of PNB Housing Finance, PNB announced that it will inject up to Rs. 600 crore in housing financier via preferential issue or rights issue among other routes subject to regulatory approval whenever the company decides on raising finances.

For the June ended quarter of FY21, the company reported a decline in net profit by 9.6% y-o-y at Rs. 257.18 crore mainly on account of lower disbursements given the Covid 19 gloom.

At 11:26 am, the stock quoted higher by 9.58% or Rs. 23 at Rs. 263.7 per share on the BSE.

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