PNB Housing Shares Fall After SEBI Halts Deal With Carlyle Group
- ByStartupStory | June 21, 2021
Shares of PNB housing finance Ltd. deteriorated as India’s capital markets regulator ordered a halt to its proposed fund-raising plan by a group of investors that has been led by private equity firm Carlyle Group Inc. Punjab National Bank, the mortgage arm of India’s second largest state lender shares dropped as much as 5%, leading an outpace of 1.8% decline in the broader banking gauge.
The PNB housing shares were locked in the 5% lower circuit at Rs. 702.40 after the Securities and Exchange Board of India (SEBI) ordered the company to halt its proposed Rs. 4,000 crore deal with Carlyle Group. The capital and commodity market regulator said that the company’s preferential share allotment was “ultra-vires” of the articles of association (AOA) of the firm. The decision regarding allotment by issuing equity shares and convertible warrants was taken on May 31 this year at an Extraordinary General Meeting (EGM) of shareholders.
An appeal has been filed by the company to the Securities Appellate Tribunal against the letter issued by the Securities and Exchange Board of India on June 18, 2021.
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