PNB Housing Finance Ltd. shares fell as much as 18% as it traded ex-rights on Wednesday.
The stock fell to an intraday low of Rs 445.15 in opening trades on the National Stock Exchange. Adjusted for the rights issue, the stock was trading 4% higher in afternoon trading on Wednesday.
The company's rights issue will open on April 13 and close on April 27. The price has been fixed at Rs 275 apiece, a discount of nearly 40% to its current market price of Rs 470 per share.
PNB Housing Finance will issue 29 new equity shares for every 54 shares held by its existing shareholders as of the record date of April 5. The housing finance company will issue over nine crore fully paid-up equity shares, each worth Rs 275, for an amount aggregating up to Rs 2,493.8 crore.
The issue is proposed to be listed on both the NSE and BSE Ltd. on May 17.
"Shareholders are booking profits with a view to buying them back from subscribing to the rights," said Vineet Bolinjkar, head of research at Ventura Securities Ltd.
This is the first announcement of an equity raise by PNB Housing Finance since its failed Rs 4,000 crore capital-raising plan in 2021.
According to exchange data, the stock has traded flat in the last five days. It fell about 20% in the last month and returned more than 15% gains in the past six months.
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