Shares of housing finance companies rallied up to 13 percent intraday Wednesday after PNB Housing Finance successfully raised Rs 2,450 crore through commercial papers (CP).
PNB Housing Finance itself rallied 12.8 percent, and Dewan Housing Finance Corporation and Indiabulls Housing Finance gained 8 percent each while GIC Housing Finance, Repco Home Finance and Reliance Home Finance rose 4 percent each.
“With the continuous support of different class of lenders, the company has successfully raised Rs 2,450 crore of CPs at competitive rates,” Sanjaya Gupta, Managing Director, PNB Housing Finance said.
This fund raising is in addition to Rs 1,775 crore raised earlier in October totalling to Rs 4,225 crore of CPs raised in October 2018. The CPs were placed with various mutual funds and banks, the company said.
Sanjaya Gupta said this will boost the overall sentiments in the sector as such deals will help build the momentum and strengthen investor confidence.
Earlier in October, PNB Housing also raised $200 million of ECB.
“This fund raising shall not increase overall exposure to CPs and we would continue to maintain overall borrowing through CPs at around 12-13 percent compared to 19 percent as of March 31 2018,” Kapish Jain, Chief Financial Officer, PNB Housing Finance said.
The IL&FS’ consistent default on interest payment to bondholders forced one of the big foreign fund houses to sell AAA-rated bonds at a big discount, which created ruckus not only in non-banking finance companies but also housing finance firms since September 2018.
courtsey By – https://www.moneycontrol.com/news/buzzing-stocks/hfc-stocks-rallyto-13-after-pnb-housing-finance-raises-rs-2450-cr-via-commercial-papers_11622521.html