PNB Housing stock spurts over 7%

Shares of PNB Housing Finance climbed as much as 7.12 per cent to Rs 1,148.9, in their biggest intraday pct gain since March 27. The stock hit its highest since June 8.

The stock jumped as Housing Development Finance Corp and Kotak Mahindra Bankare competing for a controlling stake in PNB Housing Finance as they aim to gain wider coverage in a mortgage market that’s seen among the safest of havens in the lending world, said people with knowledge of the matter.

The deal is expected to fetch them about Rs 6,000 crore each, they said.

Promoters Punjab National Bank and Carlyle, which together own about 66 per cent in PNB Housing, are looking to sell their stake to a large investor. PNB Housing Finance, HDFC and Kotak Mahindra Bank not immediately available for comments.

HDFC shares were down 0.9 per cent and Kotak Mahindra Bank was little changed. PNB Housing Finance’s stock had fallen nearly 20 per cent this year as of Friday, compared with a gain of 11.4 per cent for larger rival HDFC during the same period.

(With inputs from Reuters)