In a letter issued to PNB Housing Finance (PNBHF) on Friday evening, the capital market regulator Securities and Exchange Board of India (SEBI) has stopped allotment of its shares worth Rs 4,000 crore to the group of companies led by The Carlyle Group. is. This would have resulted in the US-based private equity firm becoming a majority shareholder in the company and would have brought down Punjab National Bank’s stake in its housing finance subsidiary to below 26 per cent.
was to be approved on June 22
PNB Housing Finance had issued notice for a General Meeting (EGM) on 31 May. It was scheduled to be held on June 22. In this, its shares were to be approved to be issued to investors led by Carlyle. Investors include Aditya Puri, former MD of HDFC Bank and senior advisor to Carlyle. After this announcement, the share price of the company had doubled during the next week.
Terming the EGM notice outside the powers of the Articles of Association (AoA) of the company, SEBI said it should not be acted upon until the company has valued the shares from an independent registered valuer as per its AoA. does it.
In its announcement to the stock market late on Saturday evening, PNB Housing Finance made the SEBI letter public as per the directions given by the regulator. In its letter, SEBI further said that the valuation report by the independent valuer should be considered by the board of the company while deciding the matter.
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However, PNB Housing Finance claimed that its Board of Directors is of the view that the company has acted in compliance with all applicable laws. The company said that the company is considering further steps in this matter. This indicates that the company may challenge the letter of SEBI.
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