In a major relief for PNB Housing Finance, the Securities Appellate Tribunal (SAT) has allowed the lender to conduct its EGM on June 22. PNB Housing Finance had scheduled its extraordinary general meeting (EGM) to seek shareholder votes on the Rs 4,000 crore capital deal with private equity player Carlyle and other investors.
However, the SAT has said that although PNB Housing Finance can conduct the EGM, but it cannot disclose the result of the shareholder votes until further orders. It also directed the lender to issue specific directions to NSDL to withhold the results of the EGM.
Market regulator SEBI had asked PNB Housing Finance to hold a proposal to get shareholders' nod for issuing equity shares and warrants on preferential basis to a clutch of investors led by Carlyle Group.
The SAT asked SEBI to file its reply before the tribunal by June 26, post which PNB Housing Finance will get to file a rejoinder to SEBI's reply. The matter will next be heard on July 5.
On May 31, PNB Housing Finance issued a notice for an EGM of shareholders to be held on June 22 to approve the issuance of its shares to investors led by Carlyle Group.
This would make the US-based private equity giant a majority shareholder in the company and would bring down Punjab National Bank's stake in its housing finance subsidiary to under 26 percent.
(Edited by : Jerome Anthony)
First Published: IST