Shares of PNB Housing Finance dropped over 5 percent on Friday after Punjab National Bank (PNB) has called off the deal to sell its stake in the company.
PNB and Varde have mutually agreed to terminate the share purchase agreement (SPA), and all rights and obligations of the parties there under with immediate effect, PNB Housing Finance said in a regulatory filing.
PNB Housing dropped as much as 5.4 percent to hit the day’s low of Rs 717 per share on the BSE. At 10:10 AM, the stock was trading 3.9 percent lower at Rs 729 as compared to a 0.5 percent (196 points) gain in the Sensex at 37,585. Meanwhile, Punjab National Bank slipped nearly 2 percent to Rs 79.50 intra-day trade after the announcement. It was currently trading 0.8 percent lower at Rs 80.50.
PNB have agreed on a sale of 1 crore equity shares held in PNB Housing Finance to Varde Holdings at Rs 850 per share aggregating to Rs 925.80 crore.
PNB further informed that post-termination of the SPA, it would still be the sole promoter of PNB Housing and stay strategically invested in the Company.
PNB strongly believes in the growth story of the company and will continue to support its business and management in pursuing their growth plans. Furthermore, PNB will continue to provide branding support if PNB still remains the promoter of the Company, it added.
