What do you see the impact of the SAT hearing on the PNB Housing / Carlyle case?

SAT will hear the case related to PNB Housing Finance-Carlyle deal, which was supposed to be a dilutive equity placement, on 12 July, Monday. The SAT order was scheduled for 05 July, but it had got postponed by a week to 12 July. The background of the SAT appeal was that it was PNB Housing that had filed an appeal with SAT against the SEBI order which had instructed PNB and PNB Housing to put the share placement on hold till due diligence.

The controversy began when global PE giant, Carlyle, in association with other investors including Aditya Puri, proposed to infuse Rs.4,000 crore into PNB Housing. This infusion would have made Carlyle the majority owner. However, Proxy firms like SES had objected to the deal on 3 counts. They objected to the method of fund raising when a rights would have been better. They also pointed that the deal was done at dirt-cheap valuations and Carlyle was not paying any control premium.