PNB Housing Finance stock declines 5%

AgenciesUpdated: Monday, June 14, 2021, 11:03 PM IST
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PNB Housing Finance stock declines 5% |

Shares of PNB Housing Finance on Monday dipped 5 per cent amid concerns over its proposed deal with private equity firm Carlyle and others.

The stock declined 5 per cent to Rs 776.85 -- its lower circuit limit -- on the BSE.

On the NSE, it dipped 5 per cent to Rs 775 -- its lowest trading permissible limit for the day.

Reserve Bank of India as well as Sebi will look into various regulatory issues related to the proposed Rs 4,000 crore-investment by US-based private equity firm Carlyle and others in PNB Housing Finance, sources said on Monday. Last month, the board of PNB Housing Finance cleared a proposal to raise up to Rs 4,000 crore by issuing preference shares and convertible warrants to Carlyle Group firms and other entities.

According to the sources, concerns of minority shareholders, corporate governance and others regulatory aspects would be looked into by RBI and Securities and Exchange Board of India (Sebi).

Earlier this year, RBI had shot down a proposal of Punjab National Bank (PNB) to infuse capital into its subsidiary PNB Housing Finance through a rights issue on concerns of the lender's financial health.

Currently, PNB as a promoter holds 32.64 per cent stake in PNB Housing Finance.

PNB Housing Finance's Extraordinary General Meeting (EGM) is scheduled to be held on June 22 to seek shareholders' approval for the preferential allotment of shares on a private placement basis to Carlyle and other entities, besides other proposals.

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