PNB Housing Finance Board Approves Raising Rs 5,000 Crore Via NCDs
An NCD is a fixed-income instrument that provides structured returns to investors.
PNB Housing Finance Ltd.'s board of directors approved on Friday the raising of Rs 5,000 crore through the issue of non-convertible debentures, according to an exchange filing.
It will be issued on a private placement basis in one or more tranches, with or without a greenshoe option.
An NCD is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.
Shares of PNB Housing closed 1.16% higher at Rs 791.7 apiece on the National Stock Exchange before the announcement, compared to a 0.03% rise in the benchmark Nifty. The stock has fallen 23.7% in the last 12 months and 9.8% on a year-to-date basis.
Out of the 14 analysts tracking the company, 12 have a 'buy' rating on the stock and two recommend 'hold', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 43.2%.
