Kolkata: PNB Housing Finance is looking to sell shares for the first time since its listing in 2016, as the mortgage lender seeks to raise fresh equity capital to support growth, two people familiar with the plan said.
The company, which Care Ratings has placed on credit watch, may be looking to raise Rs 1,800-2,000 crore this fiscal year from investors who are showing renewed interest in the nation's growing housing finance market, the people said.
The company is expected to place this proposal before its board in the last week of May. This will not be on the agenda at the May 9 meeting where the board will consider raising $1 billion in external commercial borrowing (ECB) and Rs 10,000 crore in non-convertible debentures, besides taking its financial results on record.
Its capital risk adjusted ratio (CRAR) was 14.49% at the end of December against the regulatory mandate of 12%.
“While the current capitalisation level is adequate with sufficient cushion over minimum CRAR required as per regulations, the company is planning to raise capital to achieve target growth,” it said in a regulatory filing to stock exchanges last week, in response to Care Ratings placing it on "Credit Watch with Developing Implications".
Care’s decision comes after an increase in the share of corporate loans in PNB Housing’s books — a little over one-fifth of assets under management at present. The ratings firm, however, acknowledged the strength of the Punjab National BankNSE 0.75 % brand behind it, its consistent loan portfolio growth as well as profitability, well diversified resource profile and comfortable asset quality behind its “AAA” rating.
PNB Housing borrowed Rs 30,843 crore in FY19 through long-term instrume ..
For more information Top 10 Stock Advisory Company Indore
The company, which Care Ratings has placed on credit watch, may be looking to raise Rs 1,800-2,000 crore this fiscal year from investors who are showing renewed interest in the nation's growing housing finance market, the people said.
The company is expected to place this proposal before its board in the last week of May. This will not be on the agenda at the May 9 meeting where the board will consider raising $1 billion in external commercial borrowing (ECB) and Rs 10,000 crore in non-convertible debentures, besides taking its financial results on record.
Its capital risk adjusted ratio (CRAR) was 14.49% at the end of December against the regulatory mandate of 12%.
“While the current capitalisation level is adequate with sufficient cushion over minimum CRAR required as per regulations, the company is planning to raise capital to achieve target growth,” it said in a regulatory filing to stock exchanges last week, in response to Care Ratings placing it on "Credit Watch with Developing Implications".
Care’s decision comes after an increase in the share of corporate loans in PNB Housing’s books — a little over one-fifth of assets under management at present. The ratings firm, however, acknowledged the strength of the Punjab National BankNSE 0.75 % brand behind it, its consistent loan portfolio growth as well as profitability, well diversified resource profile and comfortable asset quality behind its “AAA” rating.
PNB Housing borrowed Rs 30,843 crore in FY19 through long-term instrume ..
For more information Top 10 Stock Advisory Company Indore
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