PNB Housing Fin - Fast Growing HFC

PNB Housing Finance stake sale at an advanced stage and will be completed in FY 19 itself says Punjab National Bank

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PNB Housing management contradicts above

However Punjab National Bank, the father of the child, has issued no such categorical denial. As per the statement of PNB to the exchanges, PNB has not rejected the news outright but the father will intimate the public about the groom only after culmination of the stake sale process. It is battle royal between Carlyle the favoured prince and BlackStone the challenger. Hope the share holders will have a grand feast in the open offer.

I trust that SEBI fillings are the authentic way to understand & believe future plans of management.

In such cases where we get quick SEBI filings, we need to follow them in order of release i.e. latest should be trusted and old filling should be discarded.

In this case of sale PNB issues filing & later PNB Housing Limited came up with update.

Having said, individuals are free to use them as per their own convenience as I feel free to read them in order of my preference.

I would rather see it as separate filings. PNB Housing has feigned total ignorance of what is happening. Statement of Punjab National Bank whose stake is being sold is the one which matters. PNB doesā€™nt feign ignorance, but plainly refuse to give out the details. Since both the filings have the same date, none is to be discarded. However common sense indicates that PNB Housing is only a silent spectator and has no say in the stake sale process and hence the statement of Punjab National Bank is the one which matters.

How does any thing else matter but the earnings growth and ROE expansion over the next 5 years is the question that haunts me. The open offer will give some 15-20% premium , but that 15-20% will any way be made by the next year end whether the stake sale goes through or not. What happens if stake sale by PNB gets postponed by another few years- I think in that case it will never happen, because PNB would be out of woods by then and will not need to sell a good asset like PNB Housing. In essence- I see limited downside whether stake sale by PNB goes through or not.
Invested recently.

Interview with Nitant Desai, Chief Operations and Technology officer of PNB Housing Finance.

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PNB Housing Finance Ltd - 540173 - Outcome of Board Meeting

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Considering the liquidity situationā€¦ this set of results look very strongā€¦

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Hi All,

Can anyone give me details about this loss? image

Thanks,
Kumar

Carlyle puts in bid to acquire PNB stake in housing finance business


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Do we smell something or shall we take it as right trading / investment opportunity for Carlyle?

First they wanted to sell their holdings when PNBHF was trading around 1500, now when the prices have corrected by approx 40%-45%, they wish to acquire more.

What should a retailer read from above actions? Even we wish to buy a stock when it corrects & becomes available at attractive valuation, is Carlyle`s act similar to a retailer? Again do they have long term view in the business or they just wish to but at current rate & sell it out around 1500?

If I have understood it right, the interest to buy has been expressed after declaration of Q3 results which are good. Therefore IMHO , Carlyle finds the valuation attractive with scope for appreciation

Carlyle had withdrawn from the stake sale process a few months back, and had then indicated itā€™s interest to take controlling stake in PNB housing. Hence the present news is not surprising.

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Any liquidity crunch noticed on ground or in disbursement ?

They have disbursed more money in Q3 ( after the crisis ) compared to Q2.
So not expecting any such issues.

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