PNB Housing Shares Plunge Over 11% Following CEO Girish Kousgi's Resignation
PNB Housing Finance shares plummeted over 11% on Friday after the company's CEO, Girish Kousgi, announced his resignation. The market reacted strongly to the news, leading to significant losses for investors.
Pnb HousingCeo ResignationStock MarketMorgan StanleyHousing FinanceReal Estate NewsAug 01, 2025
Girish Kousgi was appointed CEO in October 2022 for a four-year term. During his tenure, PNB Housing's shares experienced a significant surge, gaining over 3.2 times, rising from the November 2022 lows of ₹370 to the recent highs of ₹1,200. This remarkable performance underscored Kousgi's leadership and strategic vision.
In an exchange filing on Friday morning, PNB Housing's management reassured stakeholders that the company's strategic priorities, business focus, and growth trajectories remain firmly intact. They also announced that a selection process to appoint a new CEO would be initiated promptly. The management emphasized their commitment to maintaining the company's momentum and achieving its long-term goals.
Brokerage firm Morgan Stanley maintained its 'overweight' recommendation on PNB Housing Finance but cut its price target to ₹1,100 from ₹1,300. In its note, Morgan Stanley acknowledged that Kousgi's resignation introduces uncertainties regarding the company's growth plans. The brokerage anticipated a strong negative reaction from the market, which has indeed materialized.
Investors are naturally concerned about the company's future execution and strategy. Despite the significant price drop, Morgan Stanley believes that the stock remains reasonably valued and has only cut its price target sharply while retaining its 'overweight' recommendation. This suggests that the brokerage still sees potential in PNB Housing's long-term prospects.
Shares of PNB Housing Finance are trading 11.4% lower on Friday at ₹814.7. The stock has lost 26% from its recent highs of ₹1,200, reflecting the market's reaction to the CEO's resignation. The company will need to address investor concerns and provide a clear roadmap for the future to regain market confidence.
PNB Housing Finance is a leading non-banking financial company (NBFC) in India, specializing in housing finance. The company has a strong presence across the country and has been instrumental in providing affordable housing solutions to millions of Indians. The sudden change in leadership is a critical moment for the company, and the management's ability to navigate this transition will be closely watched by the market and stakeholders.
Frequently Asked Questions
Why did PNB Housing Finance shares fall?
PNB Housing Finance shares fell over 11% after the company's CEO, Girish Kousgi, announced his resignation. This sudden change in leadership raised concerns among investors about the company's future direction and growth plans.
What was Girish Kousgi's role at PNB Housing Finance?
Girish Kousgi was appointed as the CEO of PNB Housing Finance in October 2022 for a four-year term. During his tenure, the company's shares gained over 3.2 times, rising from ₹370 to ₹1,200.
What did PNB Housing Finance's management say about the CEO's resignation?
PNB Housing Finance's management stated that the company's strategic priorities and growth trajectories remain intact. They also announced that a selection process to appoint a new CEO would be initiated promptly.
What is Morgan Stanley's recommendation for PNB Housing Finance?
Morgan Stanley maintained its 'overweight' recommendation on PNB Housing Finance but cut its price target to ₹1,100 from ₹1,300. The brokerage acknowledges the uncertainties introduced by the CEO's resignation but still sees potential in the stock.
What is PNB Housing Finance's current stock price?
As of Friday, shares of PNB Housing Finance are trading at ₹814.7, down 11.4% from the previous day and 26% from its recent highs of ₹1,200.
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