PNB Housing Finance Shares Jump Over 10% After Large Trade

Shares of PNB Housing Finance Ltd. surged 10.25% on Wednesday after a large trade. A least 1.39 crore shares, or 5% equity, in the company changed hands on Aug. 21 on the BSE, according to Bloomberg.

Buyers and sellers were not known immediately.

Earlier on Tuesday, General Atlantic Ltd. reported a broader plan to divest its entire stake in PNB Housing Finance. The US-based firm informed that it intends to sell shares worth approximately Rs 1,033 crore. General Atlantic Singapore Fund FII Pte was offering 1.33 crore shares at a floor price of Rs 775 each, which was a 4.4% discount to Tuesday’s closing price of Rs 810.9 per share on the NSE.

IIFL Securities Ltd. was to manage the share sale, which marks a strategic move by General Atlantic to liquidate its holding in the housing finance company. As of June, General Atlantic Singapore Fund held a 5.13% stake in PNB Housing Finance.

Shares of the company surged 10.25%% to Rs 894 apiece, the highest level since June 18. It pared gains to trade 6.79% higher at Rs 866 apiece as of 9:54 a.m. This compares to a 0.06% advance in the NSE Nifty 50 Index.

The stock has risen 31.63% in the last 12 months. Total traded volume so far in the day stood at 5.4 times its 30-day average. The relative strength index was at 63.

Out of 12 analysts tracking the company, 10 maintain a 'buy' rating, one recommends a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 15%.