The PNB Housing Finance Rights Issue has opened today and will run through April 27, 2023. 

The board of the housing financing company has announced a rights offering for 275 rupees per share. The issue is offered at a premium of close to 34% as compared to PNB Housing Finance's right issue price and the company's current share price of about Rs. 415 per share. 

However, the share price of PNB Housing Finance has fallen precipitously since the announcement of the rights issue. The stock has plummeted from levels around Rs. 500 per share to Rs. 415 levels in just over a week. Even today, just a few minutes of the stock market's opening bell, the share price of PNB Housing Finance opened negatively and decreased by more than 5%.

Why is the share price of PNB Housing Finance declining?: The issue has been offered at a significant discount, and the stock is showing signs of weakness on the chart patternsaidRavi Singhal, CEO at GCL Broking, explaining why PNB Housing Finance's share price has been declining since the announcement of the rights issue. 

Profit-booking was consequently triggered after the rights issue announcement, which also indicates that stock market investors have little interest in the rights offer of PNB Housing Finance. 

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