PNB Housing Block Deal: Asia Opportunities and General Atlantic to offload 4.2% stake worth Rs 830 crore

In a significant block deal, Asia Opportunities V (Mauritius) Ltd. and General Atlantic Singapore Fund FII Pte are set to sell a combined 4.2% stake in PNB Housing Finance Ltd., amounting to approximately 10.8 million shares. The transaction is valued at Rs 830 crore, according to information accessed by CNBC Awaaz.

The shares will be sold at a floor price of Rs 773 per share, reflecting an 8% discount to the last closing price of Rs 840 on the BSE. This discount is intended to attract buyers and ensure the successful execution of the deal. The stock closed today at Rs 841.65, a decline of 2.58%.

Key Details of the Block Deal:

Stake Sold: 4.2% (10.8 million shares)

Value of Deal: Rs 830 crore

Sellers: Asia Opportunities V (Mauritius) Ltd. and General Atlantic Singapore Fund FII Pte, each selling around 5.4 million shares.

Floor Price: Rs 773 per share

Last Closing Price: Rs 840 per share

Discount: 8%

Placement Agents: BNP and UBS

Lock-in Period: 60 days for sellers

BNP and UBS have been appointed as the joint placement agents for this deal, managing the distribution of shares to institutional investors. This follows a previous block deal on May 29, where 2.7% equity of PNB Housing Finance was traded.

Performance Highlights of PNB Housing Finance:

PNB Housing Finance has demonstrated robust financial performance, with a notable 57.3% increase in consolidated net profit to Rs 439.3 crore for the fourth quarter, compared to Rs 279.3 crore in the same period last year. Additionally, the consolidated net interest income for the quarter rose by 7.2% to Rs 623.2 crore, up from Rs 581.2 crore in the corresponding quarter of the previous fiscal year.

Current Shareholding:

As of the March quarter, Asia Opportunities V held a 9.88% stake, and General Atlantic Singapore Fund FII Pte held a 9.92% stake in PNB Housing Finance. The sale will slightly reduce their holdings but indicates ongoing investor confidence in the company’s long-term prospects.

This strategic move by Asia Opportunities and General Atlantic suggests a rebalancing of their portfolios while leveraging the substantial gains from PNB Housing Finance's strong performance. The deal is expected to be closely watched by market analysts and investors.