PNB Housing: Carlyle Group entity moves in

PNB Housing: Carlyle Group entity moves in

Shares of PNB Housing Finance spiked 20%, for second straight session, to hit a upper circuit of Rs 630.75 apiece as the board approval for fund raising bolstered investor sentiment.
On Monday, the board of non-banking lender approved raising Rs 4,000 crore from the former HDFC Bank chief executive officer (CEO) Aditya Puri and US-based private equity firm The Carlyle Group.
The government-owned Punjab National Bank (PNB), which owns a little over 32% stake right now, will continue to be a promoter and a key stakeholder of the company.

Apparently, the QIH, Pluto and Salisbury Investments will be classified as part of the “promoter group” of the company, following the completion of the transactions under Pluto SSA and Salisbury SSA, respectively.
Private equity giant The Carlyle Group, will contribute to 80% of the Rs 4,000 crore capital while Aditya Puri’s Salisbury Investments will contribute the balance.
Puri is the former CEO and MD of HDFC Bank, India’s largest private sector bank, which also owns the country’s largest private mortgage lender HDFC.

The equity issue is priced at Rs 390 per share, which is a discount of nearly 11% over the previous closing price.
However, the move has triggered an open offer for acquisition of over 70 million shares, representing 26% of the company’s existing equity shares. The open offer price is quoted at Rs 403.22 per share, which is at a discount of nearly 8% over the previous closing price.
The fundraising announcement is long overdue for the lender. Back in November 2020, the company had announced a fundraise of Rs 1,800 crore via a preferential issue of shares. However, its plans were derailed as its parent Punjab National Bank was not permitted by the Reserve Bank of India to pour in the capital into its lending subsidiary.

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