homemarket NewsPNB Housing calls off stake sale to Carlyle Group

PNB Housing calls off stake sale to Carlyle Group

PNB Housing calls off stake sale to Carlyle Group
Profile image

By CNBCTV18.com Oct 15, 2021 1:56:29 PM IST (Published)

PNB Housing says its Board has decided against proceeding with the Rs 4,000-crore preferential issue of shares. Pluto Investments, an affiliate of US-based Carlyle Group, will now initiate the process of withdrawing the open offer made by them.

PNB Housing Ltd said on Friday its Board of Directors has decided to call off the proposed Rs 4,000-crore deal with US-based Carlyle Group. The housing finance major cited the following reasons for the move -- pending legal proceedings, expected delay in approvals, no clarity on shareholders’ nod for the preferential issue, and continuing interim order of SAT.

Recommended Articles

View All

PNB Housing will now have to look to other sources for funds.
Pluto Investments, a Carlyle Group entity, will now begin the proceedings to withdraw the open offer made by them, PNB Housing said in a notice to stock exchanges.
The primary objective of the capital-raise exercise was to support the growth of the housing finance company. The failure of Infrastructure Leasing & Financial Services Ltd (IL&FS) in September 2018 followed by the COVID-19 pandemic hit liquidity in the markets, which hurt PNB Housing too. In such a scenario, and where demand for home loans was rising in a low-interest-rate regime, fresh funds would have given a boost to PNB Housing.
Why the deal was called off
Earlier, SEBI had raised objections related to the independent valuation of the issue.
PNB Housing had challenged the SEBI order at the Securities Appellate Tribunal (SAT), which passed a split verdict. After this, SEBI has filed an appeal against the SAT verdict at the Supreme Court.
If the plan to raise capital from Carlyle Group had gone ahead as proposed, it would have seen Carlyle Group take control of PNB Housing.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
View All

Most Read

Market Movers

View All
Top GainersTop Losers