Goldman Sachs, PremjiInvest and Munjal family in talks to invest in PNB Housing Finance, says report

Goldman Sachs, PremjiInvest and the Munjal family are in advanced talks to invest in PNB Housing Finance, Mint reported, citing two people aware of the development.

“The transaction is expected to be completed by October and there is a possibility that its parent, Punjab National Bank, may also participate in the funding round, though the potential investment is still under contemplation," one of the sources was quoted as saying in the report.

The development comes at a time when PNB Housing Finance is looking to raise up to Rs 2,000 crore through “limited preference" route, a source was quoted as saying in the Mint report. Besides Goldman Sachs, PremjiInvest and the Munjal family, two of its existing shareholders, private equity firms General Atlantic and Carlyle, will also infuse funds into the mortgage lender, the report added.

If the deal goes through, it will be a breath of fresh air to the real estate sector as it grapples with low sales and unfinished projects due to the ongoing economic slowdown. The downturn has forced the government to take several steps to protect the sector including the relaxation of  external commercial borrowing (ECB) guidelines and shelling out of Rs 10,000 crore to boost affordable housing.