New Dlhi: SEBI has stopped the allotment of shares worth Rs 4,000 crore of PNB Housing Finance to The Carlyle Group-led group of companies.
In a letter issued to PNB Housing Finance (PNBHF) on Friday evening, the capital market regulator Securities and Exchange Board of India (SEBI) has stayed the allotment of its shares worth Rs 4,000 crore to The Carlyle Group-led consortium of companies. 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.
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.
Read also: Tips to encourage yourself to follow a healthy lifestyle
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.