PNB Housing Finance Ltd, housing finance arm of Punjab National Bank, is in talks with some companies, including Standard Chartered, to divest up to 26 per cent stake.
“We are examining the possibility of roping in a strategic partner or private equity firm as part of unlocking value,” PNB Housing Finance Managing Director V K Khanna said.
The decision in this regard would be taken by June, he said.
According to sources, Standard Chartered along with other companies is in talks with the housing finance firm to pick up stakes.
However, there was no confirmation from PNB Housing Finance about Standard Chartered's interest in the company.
PNB Housing Finance needs capital for scaling up operation, he said, adding that the fund has to come from either strategic investors or capital market.
The company has raised about Rs 450 crore through bonds during the current financial year to fund its long term resources.
Khanna said, the company has enough capital adequacy to meet its requirement in the next fiscal. However, it would require capital to meet the business expansion during 2009-10.
In addition to this, listing is also being consider as part of raising money, Khanna added.
For the nine-month ended December 2007, the firm posted a growth of 76 per cent in its net profit at Rs 28.87 crore, compared to Rs 16.40 crore in the same period a year ago.
Led by the growing demand in the housing finance sector the company's total income grew 51 per cent to Rs 159.97 crore in the nine-month period, against Rs 106.14 crore for the same period in the previous year.
Source: Economic Times