PNB Housing Finance to raise Rs 1,800 cr equity capital
Aug 20, 2020
New Delhi [India], Aug 20 : PNB Housing Finance will raise up to Rs 1,800 crore equity capital through a preferential or rights issue.
The fund-raise is subject to shareholders' approval and other regulatory clearances.
"The board of directors at PNB Housing Finance at its meeting held on Wednesday has approved to raise equity capital aggregating up to Rs 1,800 crore through preferential issue/rights issue," it said.
The company faces a heightened risk of slippages in the wholesale book due to COVID-19 linked lockdown, weak economic activity and its implications on the real estate segment.
Preference shares are those wherein the holders of the stock are paid fixed dividends as well as given preference for being paid from the company's assets before common stockholders in case it goes bankrupt.
Rights issue refers to offering additional shares to existing shareholders proportionate to their existing holding.
At 11:20 am on Thursday, the company's stock was trading 1.83 per cent higher at Rs 280.50 per unit.
