PNB Housing Share Price Plunges Over 16% After CEO Resignation Shocker

Market Performance: PNB Housing Share Price Nosedives

On August 1, PNB Housing Finance Ltd witnessed a sharp correction in its stock, with the PNB Housing share price tumbling over 16% intraday.

• The stock touched a low of ₹834, declining significantly from the recent high of ₹1,200.
• This marks a 26% drop from its recent peak levels.
• Trading volumes surged, indicating heightened investor activity post the resignation news.

Main News: CEO Girish Kousgi Resigns Before Completing Term

The sharp fall in the PNB Housing share price came after a surprising announcement that MD & CEO Girish Kousgi had stepped down.

• Kousgi was appointed as CEO in October 2022 for a tenure of four years.
• His resignation was submitted on Thursday, triggering investor concern early Friday morning.
• The news was confirmed via an exchange filing on August 1.

Company Details: Strategic Direction to Remain Unchanged

Despite the leadership vacuum, PNB Housing Finance reiterated that its core business priorities and long-term strategies remain unaffected.

• The company confirmed that it will begin the process of selecting a new CEO.
• According to the management, strategic priorities, business focus, and growth trajectory remain firmly intact, despite the unexpected exit.

Historical Performance of the Stock

While Friday’s sharp correction drew attention, it's important to note the stock's strong performance since Kousgi’s appointment:

• In November 2022, the stock was trading near ₹370.
• Under his leadership, the stock surged over 3.2x, hitting highs of ₹1,200 in recent months.

This steep rise highlights the positive sentiment that had built around the CEO's execution strategy and growth vision.

Summary of the Article

The PNB Housing share price took a severe hit, falling over 16% on August 1, following the sudden resignation of CEO Girish Kousgi, just halfway through his intended four-year term. While the management has emphasized that the company’s strategic outlook is solid, the market reacted sharply to the leadership uncertainty. Investors will be closely watching the developments around the CEO selection process and the company’s ability to sustain its growth trajectory without its outgoing leader.