The board of PNB Housing Finance Ltd has given its nod to file a draft letter of offer for a rights issue with market regulator Securities and Exchange Board of India (SEBI).
The housing lender also announced via regulatory filing that the draft offer letter will carry Tuesday's date. In March, the firm's board had given its permission for a proposal to raise Rs 25 billion from a rights issue for its shares to existing stakeholders.
The the Reserve Bank of India also agreed to let the Punjab National Bank participate in a rights issue for the housing finance arm. As part of this, the lender will invest as much as Rs 5 billion to keep its stake in PNB Housing at 30% or at least above 26%, to remain a promoter.
