PNB Housing Shares Fall After Order to Halt Carlyle Deal
Labourers work at a real estate construction site in Mumbai (Photographer: Dhiraj Singh/Bloomberg)

PNB Housing Shares Fall After Order to Halt Carlyle Deal

Shares of PNB Housing Finance Ltd. fell after India’s capital markets regulator ordered a halt to its proposed fund-raising plan by a group of investors led by private equity firm Carlyle Group Inc.

The mortgage arm of India’s second-largest state lender, Punjab National Bank, dropped as much as 5% in Mumbai on Monday, outpacing a 1.8% decline in the broader banking gauge.

The Securities and Exchange Board of India said PNB Housing’s plan to issue securities by way of preferential allotment on a private placement basis shouldn’t be carried out until it undertakes the valuation of shares from an independent registered valuer, according to a stock exchange filing on Saturday. PNB Housing has filed an appeal with a tribunal against the order, the firm said in an exchange filing on Monday.

“Company has filed an appeal before the Securities Appellate Tribunal against the letter issued by the Securities and Exchange Board of India on June 18, 2021,” PNB Housing said.

The financier said on Saturday it had acted in compliance with all relevant applicable laws and was evaluating further steps. The independent valuer’s report “shall be considered by the company’s board while deciding on the preferential issue of shares and warrants,” the housing company had said.

READ: Carlyle to Lead $553M PNB Housing Capital Raising

Last week, the Mint newspaper said SEBI was probing the investment plan after proxy advisory firm SES described the proposed deal as “unfair and abusive” for minority shareholders of PNB Housing, and that the mortgage lender could have raised the funds through a rights issue.

©2021 Bloomberg L.P.

Also read: PNB Housing Files Appeal In SAT After SEBI Seeks Review Of Carlyle Deal

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