Money & Banking

PNB Housing Finance plans fund raising up to ₹2,000 crore via NCDs

K R Srivats New Delhi | Updated on October 21, 2021

Board to meet on November 2 to consider this proposal

PNB Housing Finance Limited (PNBHFL) proposes to go in for a fund raise of up to ₹2,000 crore through non convertible debentures (NCD) route. This proposal will be taken up at the upcoming board meeting of PNBHFL on November 2, sources said.

This plan to go in for fund raising via NCD route — in tranches — on private placement basis comes on the heels of the PNBHFL Board deciding not to proceed with the ₹4,000 crore preferential allotment deal with Carlyle Group and other marquee investors.

Preferential allotment deal falls through

It may be recalled that the PNBHFL-Carlyle Group deal had hit a roadblock after a proxy advisory firm had red flagged the preferential allotment on the pricing front, contending that it was not in the interest of the promoter (PNB) as well as the minority shareholders of PNBHFL.

Market regulator SEBI had soon after this intervened and asked PNBHFL not to go ahead with the planned preferential issue until the valuation of the shares is done by an independent registered valuer.

Also see: PNB Housing locked in lower circuit after it shelves stake sale plan

PNBHFL had fixed the preferential allotment price at ₹390 per share, lower than the stock price prevailing at that time. The company had preferred an appeal before the securities appellate tribunal (SAT) on the SEBI letter.

A two-member bench of the SAT on August 9 gave a split verdict and directed that its interim order of June 21 will continue till further orders. SAT also restrained PNB Housing Finance from disclosing the voting results (of shareholders) on the fund raise plan.

Post the SAT’s split verdict, SEBI had filed an appeal at the Supreme Court against this verdict.

SC dismisses SEBI appeal

Meanwhile, the Supreme Court on Wednesday dismissed the SEBI appeal against the SAT’s order in the PNBHFL’s ₹4,000 crore capital raising deal with Carlyle Group and other investors, stating that the appeal has become infructuous due to subsequent developments.

A bench headed by Justice L Nageswara Rao was informed by the counsel for PNBHFL that the housing finance company had decided not to proceed with the preferential allotment of shares and warrants to Carlyle Group and that an application has also been moved before SAT for withdrawal of its appeal against a SEBI directive.

Published on October 21, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like