Carlyle will do much of the heavy-lifting in infusing Rs 3,185 crore while others will pitch in with another Rs 815 crore to help the housing finance company improve its capital buffer.
However, it is Puri’s appointment as the nominee of Carlyle in the board of the company and Carlyle’s effective majority ownership after the completion of an open offer for 26 per cent more stake that is really making Dalal Street enthusiastic.
Not only did PNB Housing’s stock soar 20 per cent, but Puri’s faith in the space lifted other housing finance companies.
RIL’s juggernaut gathers steam
Reliance Industries, after laying dormant for most of the year, appears to have found a new life as the stock rose for the second consecutive day. After rising over 5 per cent on Friday, the stock added another 3 per cent in today’s session.
True, investors are seeing the company’s legacy business of refining and petrochemicals in more optimistic light given surging global petrochemical margins as well as hopes of refining product demand picking up.
However, one can’t help but feel that Mr Market is sniffing some more jaw-dropping announcement from the House of Ambani when they gather for the annual shareholders meeting sometime in mid-July.
M&M’s optimism is fading
While the management of the company touted of it is now in a position to fly after its March quarter earnings announcement on Friday, an interview to Reuters showed that perhaps they were overstating things a bit. M&M told Reuters that car sales aren’t returning to pre-COVID levels for another two years and that a slow vaccination pace could hurt the recovery.
Dalal Street was obviously unimpressed as the stock nosedived over 4 per cent during the session.
