PNB Housing Finance To Hold EGM Today Amidst Concerns Over Carlyle Deal
- ByStartupStory | June 22, 2021
PNB Housing Finance to hold EGM and shareholders’ meeting to consider the proposed ₹4000 grote investment by a private equity firm. Carlyle Group Inc and others in mortgage firms. However, results of the shareholders’ voting will not be disclosed immediately, but only after directions from the Securities Appellate Tribunal, (SAT) which on Monday allowed Punjab National Bank Housing Finance Ltd to go ahead with the shareholders’ meeting.
The SAT ruling came hours after PNB Housing Finance informed the stock exchange that it has appealed against the Securities and Exchange Board of India (Sebi) on June 18. Sebi which is the capital markets regulator ordered PNB Housing Finance to stop it’s proposed fund raising plan by a group of investors called Carlyle. After a stock exchange filing on Saturday, Sebi said PNB Housing’s plan to issue securities by preferentially allocating on a private placement basis should be temporarily closed until it undertakes the valuation of shares from an independent registered valuer.
PNB Housing Finance under this proposed deal, will allot securities worth ₹4,000 crore to Carlyle Group and other entities, a deal that will eventually result in these private equities becoming a major shareholder of the company. The proposed transaction has come under the lens of both Sebi and the Reserve Bank of India (RBI) after questions were raised in certain quarters, about the deal, including by a proxy advisory firm.
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