know about PNB Housing Finance Carlyle Group deal details here varpat

Experts have raised questions on the transaction between PNB Housing Finance and US-based private equity firm Carlyle.

Experts have raised questions on the transaction between PNB Housing Finance and US-based private equity firm Carlyle.

Experts have raised questions on the transaction between PNB Housing Finance and US-based private equity firm Carlyle.

New Delhi. Experts have raised questions on the transaction between PNB Housing Finance and US-based private equity firm Carlyle Group. Information is being given here on this deal and the objection of the capital market regulator SEBI regarding it.

The board of PNB Housing Finance at the end of last month approved the preferential allotment of shares and warrants to certain firms, including Carlyle. These firms include General Atlantic, Salisbury Investments Pvt Ltd and Alpha Investments. Rs 4,000 crore is to be raised through this deal. Aditya Puri, former chief executive officer of HDFC Bank, is associated with Salisbury Investments involved in this deal and it is his family investment firm.

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Rs 800 crore warrants issue to be raisedOf this amount, Rs 3,200 crore will be raised by issuing equity shares and Rs 800 crore by issuing warrants. The allotment has been done at a price of Rs 390 per share/warrant as against the current market price of the company’s shares at Rs 525. After this deal, Carlyle will become a majority shareholder in the housing finance company and the actual promoter Punjab National Bank’s stake in it will be reduced. It will be around 20 percent, which is currently at 32.64 percent.

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Why did SEBI take the step of stopping the deal?

SEBI has barred PNB Housing Finance from making preferential allotment of shares and warrants. SEBI has said that the resolution proposed for this is in complete violation of the Articles of Association of the company and the deal cannot proceed until the allotment price is fixed by an Independent Registered Valuer. The company has challenged this decision in the Securities Appellate Tribunal, which has allowed the company to conduct the voting of the shareholders on the resolution on June 22. There will be a hearing on July 5 for the disposal of this matter in the tribunal.




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