₹4,000 crore Carlyle, PNB Housing deal paused by SEBI

A pause on ₹4,000 crore share allotment to a clutch of companies led by the Carlyle Group has been effectively put on by the Securities and Exchange Board of India (SEBI), the capital markets regulator, in a letter issued to PNB Housing Finance (PNBHF) late Friday evening. This could have brought down the stake of Punjab National Bank in its housing finance subsidiary to under 26 per cent and would have made the US-based private equity giant a majority shareholder in the company.

To approve the issuance of its shares to investors led by Carlyle including Aditya Puri, former MD of HDFC bank and a senior adviser to Carlyle, the Punjab National Bank Housing Finance had issued a notice on 31st May for an extraordinary general meeting of the shareholders to be held on 22nd June with regards to the same.

Securities and Exchange Board of India (SEBI)said that until the company undertakes the valuation of shares as prescribed in its AoA by an independent registered valuer it should not be acted upon, SEBI said mentioned by calling the EGM notice ultra vires of the company’s Articles of Association (AoA).

The contents of the letter issued by the Securities and Exchange Board of India was made clear to the public in an announcement to the stock exchanges late Saturday evening by the Punjab National Bank Housing Finance as instructed by the regulator.

While deciding on the preferential issue, the valuation report by the independent value should be considered by the company’s board, the Securities and Exchange Board of India further said in its letter.

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