US-based private equity firm Carlyle is expected to sell up to a 6.4 per cent stake in PNB Housing Finance via an open market transaction on Tuesday, as per a report by CNBC Awaaz.

According to a term sheet from IIFL Securities, Quality Investment Holdings, a Carlyle entity, plans to sell 1.66 crore shares at a floor price of ₹775 each, targeting to raise ₹1,256 crore. This floor price is set at a 5 per cent discount compared to Monday’s closing price of ₹794.90.

Instant Apply

PNB Housing stock has significantly underperformed this year, gaining only 1.2 per cent compared to the 13 per cent increase in the benchmark Sensex. As of June 30, 2024, Carlyle owned a 32.68 per cent stake in the housing finance company.

Carlyle plans to sell shares valued at ₹1,000 crore, with a base price expected to be between ₹750 and ₹760 per share, according to the channel’s report. At the top end of this price range, the shares are offered at a 4.5 percent discount compared to the last traded price on Monday, July 29.

Shares of PNB Housing Finance have remained relatively steady on a year-to-date (YTD) basis, increasing by just 1.14 percent. Over the past year, the shares have risen by 25 percent. The current share price is 13 percent below its 52-week high of ₹913.70.

According to the latest shareholding data for the June quarter, the promoter’s stake in the company remains unchanged at 28.13 percent. However, mutual funds have increased their holdings from 3.37 percent to 5.86 percent during this period. Conversely, Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) have reduced their holdings from 25 percent to 17.89 percent in the June quarter.

In the past year, PNB Housing has shifted its business model to focus more on retail, decreasing the proportion of corporate loans in its assets under management (AUM). Moving forward, the company plans to increase its share of affordable housing disbursements within its overall retail disbursements over the medium term.