Fund raising plan boosts PNB Housing Finance

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PNB Housing Finance rose 1.05% to Rs 408.20 after the company said that its board will consider plan to raise funds on Monday, 31 May 2021.

The funds will be raised via issue of equity shares and/or other securities by way of preferential issue or through any other permissible modes, as may be considered appropriate, subject to such approvals as may be required under applicable law.

In a separate announcement, PNB Housing Finance said it has has executed a revised Trademark Agreement (Agreement) with Punjab National Bank (PNB) on May 24, 2021. The existing brand arrangement dated December 7, 2009 will continue to govern use of PNB trademark until PNB’s shareholding in the Company is 30% or more. Upon PNB’s shareholding falling below 30%, the new Agreement will replace the existing Agreement.

As per revised agreement, in the event PNB’s shareholding in PNB Housing falls below 20%, PNB would have the right to terminate the revised Agreement. In case of such termination, PNB Housing shall be allowed a transition period of up to 24 months for change of Brand name.

Also as per revised agreement, PNB Housing will pay a royalty which is higher of 0.2% of Revenue and 2% of PAT subject to a minimum charge of Rs 14.97 crore and a maximum charge of Rs 30 crore. The royalty will be payable upon PNB’s stake falling below 30%.

Both these announcements were made after trading hours yesterday.

PNB Housing Finance is a deposit-accepting housing finance company, with second largest deposits outstanding within housing finance companies. The company provides housing loans to individuals for purchase, construction, repair, and upgrade of houses. It also provides loans against property, loans for commercial property, and loans for purchase of residential plots, and real estate development loans.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, May 26 2021. 09:18 IST