TOP NEWS

PNB Housing Finance rights issue opens today. Share dips over 5%

PNB Housing Finance rights

The PNB Home Financing Rights Issue has begun and will run through April 27, 2023. The board of the housing finance company has announced a rights offering for 275 per share. When comparing the proper issue price of PNB Housing Finance to the current share price of PNB Housing Finance, which is roughly $415 per share, the issue is offered at a premium of close to 34%. The share price of PNB Home Finance has fallen precipitously since the announcement of the rights issue, though. The stock has plummeted from heights above 500 per share to values near 415 in less than a month. Even today, just a few minutes of the stock market’s opening bell, the share price of PNB Home Finance opened negatively and decreased by more than 5%.

Why is the share price of PNB Home Finance declining?
Ravi Singhal, CEO of GCL Broking, commented on why PNB Housing Finance’s stock price dropped following the news of a rights offering, “The stock appears weak on the chart pattern, and the issue has been offered at a significant discount. Profit-booking was consequently triggered after the rights issue announcement, which also indicates that stock market investors have little interest in the rights offer of PNB Home Finance. The financial stock currently has immediate support at 370 per share after branching out from its previous support of 425.”

Here we provide key PNB Home Finance rights issue information because the stock is volatile on the issue opening date.

1] Date of the PNB Home Finance rights offering: The rights offering began on April 13, 2023, and will last until April 27, 2023.

2] Price of the PNB Home Financing Rights Issue: The price for each right has been set at 275.

3] The rights issue ratio for PNB Home Finance is 29 rights equity share(s) for every 54 fully paid-up equity shares held as of the record date, or April 5, 2023.

4] The amount of the PNB Housing Finance rights offering is 90,681,828 PNB Housing Finance shares for a total value of 2,493.76 crore.

5] Listing of the PNB Home Financing Rights Issue is proposed for both the NSE and the BSE, with the anticipated date of listing being May 17, 2023.

Disclaimer: Currency Veda does not endorse the opinions or suggestions expressed above by specific analysts or brokerage firms. Before making any financial decisions, we suggest investors to consult with licenced professionals.