PNB Housing Finance: Why is it on a roller-coaster ride?

Recently, PNB Housing has been in the spotlight for many reasons. After nearly doubling, its share price has again started fluctuating wildly in the last two weeks amid the allegations of mismanagement and poor corporate governance. At this point in time, a retail investor may get confused about the next course of action. Perhaps, taking a step back and looking at the larger picture may help. Why did the stock go up? PNB Housing Finance, which is promoted by a Public Sector Undertaking - Punjab National Bank (PNB), is in dire need of funds for its operations and further growth. But owing to the financial crunch faced by its promoter PNB, the company decided to issue additional shares to a group of investors led by the Carlyle Group - an existing shareholder. An infusion of Rs 4,000 crore, coupled with the possibility of Mr Aditya Puri (an industry veteran with an exemplary track record) joining the comp