PNB Housing Finance Surges 5% Despite Partial Block Deal Execution; Carlyle Likely Seller

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Housing Finance rallied over 5% intraday after a significant block deal hit the markets, even as only half of the proposed stake sale was executed. The trading volume surged to four times the one-month average, signaling heightened investor interest despite a discounted offer price. According to CNBC-TV18, only 1.37 crore shares, or roughly 50% of the total 2.74 crore shares intended for sale, changed hands on the bourses today. The indicative price of the block deal was ₹960 per share, a 5% discount to the April 30 closing price of ₹1,010.20. Sources confirmed to Moneycontrol that the seller is Quality Investment Holdings PPC, an affiliate of US private equity major Carlyle. The deal was aimed at offloading up to 10.4% stake, potentially raising around $308 million. IIFL Capital is reportedly acting as the advisor to the transaction. However, none of the parties have issued an official statement, and all information has been provided on the condition of anonymity. Strategic Shift Amid Rising Competition The block deal comes at a time when PNB Housing Finance is undergoing a strategic pivot. The company recently outlined ambitious plans to achieve a retail loan book of ₹1 lakh crore by FY27. Management is banking on continued demand in the mortgage sector, despite increased competition from banks, which has exerted some pressure on lending margins. To counter this, PNB Housing is realigning its focus towards the affordable housing and emerging segments, which offer better yields and higher growth potential. This move is seen as a proactive step to sustain profitability while maintaining asset quality.