PNB Housing Finance raises funds worth Rs 5,000 crore

23 Jun 2023 , 01:35 PM

PNB Housing Finance obtained board approval to issue Rs 5,000 crore in bonds to fund its business expansion.

The non-convertible debentures will be issued to investors through a private placement basis, the company announced Thursday following the board meeting.

This will be the second fundraising of PNB Housing Finance during the current fiscal year. This follows an equity infusion of Rs 2,490 crore through a rights issue of shares. In addition to bank borrowing, it intends to borrow approximately Rs 2,500 crore from National Housing Bank through the latter’s refinancing window.

However, the company does not plan to further expand equity in the next few years.

Following the infusion of equity capital, its capital adequacy ratio is expected to rise to 30%. At the end of March, its overall capital adequacy was 24.4%.

At around 1.27 PM, PNB Housing Finance was trading 2.71% lower at Rs 594.55, against the previous close of Rs 611.10 on NSE. The counter plunged to an intraday low of Rs 592.15 so far.

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