What is the big controversy about the PNB Housing share placement to Carlyle?

The entire controversy began when PNB Housing approved fund raising by issuing shares plus warrants worth Rs.4,000 crore to Carlyle Group. This would have made PNB a minority shareholder and Carlyle a majority shareholder. PNB Housing needed urgent infusion of funds to shore up capital adequacy. As of now, the EGM is done, but vote verdict is not out.

Objections to the deal started with proxy firms like SES who felt it was against the interests of shareholders. They suggested a rights but the company obviously did not have the time and the risk capacity to see through the uncertainty of a rights issue. SES also objected to the price saying it did not include control premium and was much lower than book value.