Mumbai, Aug 19 (IANS): The Board of PNB Housing Finance on Wednesday approved raising Rs 1,800 crore of equity capital through preferential issue or rights issue.

In a regulatory filing, the housing finance company said that shareholders' approval would be required, among other regulatory approvals, for raising the capital.

It said that the board of directors "has approved to raise equity capital aggregating up to Rs 1,800 crore through preferential issue/rights issue, subject to such approvals as may be required, including the approval of the shareholders at a general body meeting or through postal ballot and further subject to such other statutory/regulatory approvals, as applicable".

Shares of the company surged on Wednesday on expectation of the board approving the raising of capital. On the BSE, it closed at Rs 275.45, higher by Rs 14.55 or 5.58 per cent from the previous close.

Several NBFCs and banks have of late raised capital or have announced to raise it, in a bid to create a buffer amid the pandemic.