PNB Housing Finance - Capital Infusion Brings Notable Triggers: ICICI Securities

The sun setting is reflected in an apartment building in the suburb.  (Photographer: Brendon Thorne/Bloomberg)

PNB Housing Finance - Capital Infusion Brings Notable Triggers: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

PNB Housing Finance Ltd.’s board approval for preferential issue reduces the overhang on much awaited equity infusion and/or stake sale.

It also brings with it a few notable positive triggers:

  1. Carlyle raising its stake to 50% and the company’s stake to be down to 20% (not expected to go below this), putting to rest the overhang of any further stake sale in the interim.

  2. Mr. Aditya Puri’s nomination to the board will lend considerable credence to the company’s business transition and strategic intentions.

  3. Capital buffer is enhanced to adequately face the potential stress due to Covid-19 disruption, and gradually improve visibility on rating upgrade.

Click on the attachment to read the full report:

ICICI Securities PNB_Housing Company Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.