The Competition Commission has given its nod for the proposed investments by Carlyle Group and other investors in PNB Housing Finance Ltd.
Under the deal, Pluto Investments S.a.r.l. and Salisbury Investments Pvt Ltd would acquire an equity stake in PNB Housing Finance, where state-owned Punjab National Bank holds a little over 32 per cent stake.
The transaction has been approved by the Competition Commission of India (CCI) under the Green Channel, an official release said on Wednesday.
Green Channel is an automatic approval system wherein a combination is deemed to have been approved by the regulator upon the filing of the notice for the combination by the parties concerned.
Pluto is a newly established special purpose vehicle incorporated under the laws of Luxembourg and does not have any business activities in India. It is majority-owned and controlled by investment funds known as Carlyle Asia Partners V, all being advised by affiliates of the Carlyle Group Inc.
Carlyle Group is a global alternative asset manager. Salisbury is a non-banking finance company and is primarily engaged in the business of making investments in financial securities.
The deal, announced on May 31, has come under the lens of markets regulator Sebi with respect to valuation.
PNB Housing Finance has challenged Sebi's directive and the matter is before the Securities Appellate Tribunal (SAT), which has reserved its order.
On Tuesday, Punjab National Bank's Managing Director S S Mallikarjuna Rao said there was no error of judgement with regard to the fund infusion decision of PNB Housing Finance, adding that the future course of action would depend on SAT's order.
