PNB Housing Finance Ltd said on Monday it would raise up to Rs 4,000 crore ($551.6 million) in a funding round led by global private equity firm The Carlyle Group.
The company said Carlyle affiliate Pluto Investments will invest Rs 3,185 crore at a price of Rs 390 per share.
Existing shareholders Ares SSG and General Atlantic will also participate in the fundraise. Salisbury Investments, the family investment vehicle of Aditya Puri who is the senior advisor for Carlyle in Asia and HDFC Bank’s former chief executive and managing director, will also take part in the fundraise.
The deal will trigger a mandatory open offer by Pluto Investments to buy up to 26% equity of PNB Housing Finance.
“The current fundraise and planned strengthening of the board and management team will enable us to accelerate our strategic priorities, including further expanding our footprint, driving the company’s digitisation, improving our operating model and customer engagement,” Hardayal Prasad, managing director and chief executive of PNB Housing Finance, said.
Established in 1988, PNB Housing Finance is the fourth largest housing finance company in India in terms of loan assets.
“This substantial additional investment reflects Carlyle’s strong commitment to India as a core market. We look forward to continuing our partnership with a leading bank like Punjab National Bank (PNB) to support the company as it embarks on a new growth journey,” said Sunil Kaul, managing director of the Carlyle Asia advisory team.
PNB will continue to be promoter and key stakeholder in the company, the housing finance company said.
PNB is the second largest public sector bank in India, both in terms of business and branch network. Since its foundation in 1985, seven banks have merged with the lender including United Bank of India and Oriental Bank of Commerce in 2020.