PNB Housing Finance Mulls Raising Up To Rs 5,000 Crore Via NCDs
Non-convertible debentures are fixed-income instrument that provides structured returns to investors.
PNB Housing Finance Ltd.'s board of directors will meet on Sept. 5 to consider raising funds up to Rs 5,000 crore via non-convertible debentures, according to an exchange filing on Friday.
The NCDs are proposed to be raised with or without a green-shoe option on a private placement basis in one or more tranches, it added.
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.
Towards the end of last month, Managing Director and Chief Executive Officer Girish Kousgi resigned. The resignation will come into effect from Oct. 28, the housing financier informed exchanges.
Shares of PNB Housing Finance settled 1.75% lower at Rs 767.05 apiece on the National Stock Exchange before the announcement, compared to a 0.3% decline in the benchmark Nifty. The share price has fallen 14.14% on a year-to-date basis and 20.76 in the last 12 months.
