A day after the markets regulator delayed global private equity major Carlyle’s investment plan for PNB Housing Finance, the lender challenged the action before the Securities Appellate Tribunal (SAT).
On Saturday last week, Securities and Exchange Board of India (SEBI) asked the Punjab National Bank-owned housing financier to keep on hold the proposal to seek the shareholders’ nod for a preferential allotment of equity until an independent valuation of shares was done.
PNB Housing Finance was to hold an extraordinary general meeting of shareholders on June 22 to consider the preferential allotment through which Carlyle Group and associates would acquire a controlling stake of over 50%.
Last month, PNB Housing Finance had decided to raise up to Rs 4,000 crore ($551.6 million) in a funding round led by US-based Carlyle.
As part of the deal, the Delhi-based mortgage lender said that 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 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.
According to experts, the decision to allot shares and warrants to Carlyle Group, Puri, and others at Rs 390 apiece was “unfair” to the public and other shareholders.
The home financier maintains that the company had acted in compliance with the laws.