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PNB Housing Finance Shares Gain 5 %

PNB Housing Finance will allot securities worth Rs 4,000 crore to Carlyle group and other entities, a deal that will eventually result in the private equity major becoming a major shareholder of the company.

Photo Credit : Reuters

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Shares of PNB Housing Finance bounced back on Tuesday, gaining 5 per cent, as setting aside Sebi's direction, the Securities Appellate Tribunal allowed the company to go ahead with the shareholders' meet to consider a proposed Rs 4,000-crore investment by private equity firm Carlyle and others in the mortgage firm.

The stock jumped 4.99 per cent to close at Rs 737.45 on the BSE.

On the National Stock Exchange (NSE), it gained 4.99 per cent to close at Rs 735.95.

The stock had fallen in the past two days.

Setting aside Sebi's direction, the Securities Appellate Tribunal on Monday allowed PNB Housing Finance to go ahead with the shareholders' meeting on Tuesday to consider the proposed Rs 4,000-crore investment by private equity firm Carlyle and others in the mortgage firm.

However, results of the shareholders' voting will not be disclosed till further directions from the tribunal.

The extraordinary general meeting (EGM) is scheduled for Tuesday (June 22).

In a not-so-often-seen move, Sebi not only restrained PNB Housing Finance from going ahead with voting on the proposal but also directed that the matter should be placed afresh before the company's board and then a decision be taken on the basis of the independent valuation.

Under the proposed deal, PNB Housing Finance will allot securities worth Rs 4,000 crore to Carlyle group and other entities, a deal that will eventually result in the private equity major becoming a major shareholder of the company.

On Monday morning, PNB Housing Finance moved the tribunal against Sebi direction. 

(PTI)