InvestorQ : Why has PNB Housing decided to call of its Rs.4,000 crore deal with Carlyle? What happens to the funding now?
Dilmini Mercia made post

Why has PNB Housing decided to call of its Rs.4,000 crore deal with Carlyle? What happens to the funding now?

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Dawn Cherian answered.
2 months ago
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The continued litigation around the stake sale to Carlyle has forced PNB Housing to drop plans of selling a stake worth Rs.4,000 crore to Carlyle PE Fund. It was supposed to be a preferential issue to a Carlyle-led consortium of investors, which had to be dropped after objections over the absence of independent valuation. There were also objections over doing a preferential issue over rights issue and also the absence of control premium.

Meanwhile, PNB Housing has also informed the stock exchanges that Carlyle and other investors will withdraw their open offer to PNB Housing shareholders. One of the investors in the consortium along with Carlyle was Salisbury Investments promoted by Aditya Puri, former HDFC Bank CEO. While SEBI had objected to the deal and SAT had issue da split verdict, SEBI had approached the Supreme Court against the sat order.

Carlyle and PNB Housing felt that in the light of the uncertainty over whether regulatory approvals required for the preferential issue would come through or not, the issue was being withdrawn. The placement of shares was planned at Rs.390 but the stock had doubled after that, leading to questions being raised over the propriety of the deal by proxy firms. PNB Housing has an AUM of Rs.71,828 crore and capital adequacy ratio of 21.4%.
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