PNB Housing Finance Raises Rs 2,500 Crore through Rights Issue with Entitlement Ratio of 29:54
PNB Housing Finance Ltd. has raised Rs 2,500 crore through a recent rights issue. The company has adopted a right entitlement ratio of 29:54, where eligible equity shareholders will be issued 29 equity shares for every 54 equity shares they own on the record date. The issue will be operational from April 13 through April 27, 2023.
The Details of the Rights Issue
The board of PNB Housing Finance approved the rights issue at a meeting held on March 28. The company will issue 9,06,81,828 fully paid-up equity shares for Rs 275 per share, including a premium of Rs 265 per equity share. The record date for identifying the equity shareholders eligible to receive the rights has been set as April 5, 2023.
The Impact of the Rights Issue
The proceeds from the rights issue can be utilized to reduce debt, fund new projects, or expand the company's operations. This will help PNB Housing Finance expand its position in the market and further strengthen its commitment to providing affordable housing finance solutions to its customers.
What is a Rights Issue?
A rights issue is a method for companies to raise capital by offering shares to existing shareholders at a discounted price. Existing shareholders have the first right to purchase the newly issued shares, enabling them to maintain their stake in the company without diluting their ownership.
About PNB Housing Finance
PNB Housing Finance is a leading housing finance company in India that offers a range of financial products to individuals and corporate entities. The company has a wide network of branches nationwide and is committed to providing affordable housing finance solutions to its customers.
Conclusion
The rights issue by PNB Housing Finance is an excellent opportunity for eligible equity shareholders to increase their stake in the company and benefit from its growth prospects. The funds raised through this issue will help the company expand its operations and further strengthen its position in the market. The company's commitment to providing affordable housing finance solutions to its customers is commendable, and it is expected to continue to do so.
