Private Equity

Private Equity Fund Investments

PNB Housing Finance to raise Rs.4,000-Cr led by Carlyle Group

Press Release   Mint  

New Delhi-based, publicly listed mortgage lender PNB Housing Finance Ltd (PNBHFL) is to raise INR 4,000 crore led by existing investor, US-headquartered Private Equity firm Carlyle Group with participation from former HDFC Bank CEO Aditya Puri. Other PE investors, Ares SSG and General Atlantic, are also participating in the capital raise. Pluto Investments S.a.r.l. (an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P.), will invest up to INR 3,185 crore through a preferential allotment of equity shares and warrants, at a price of INR 390 apiece. Puri's family investment vehicle, Salisbury Investments Pvt. Ltd, will invest INR 25 crore as part of the transaction. Puri, who joined Carlyle as a senior adviser in November after retiring from HDFC Bank, will join the PNBHFL board as Carlyle's nominee director. Carlyle is an existing investor in PNBHFL, owning a 32.21% stake through group firm Quality Investment Holdings. Original promoter, Public Sector bank PNB, holds 32.64% currently. The new capital infusion will make Carlyle the largest shareholder in PNBHFL. Carlyle and its affiliates, as well as Puri's investment firm, will now be classified as promoters of PNBHFL along with PNB. The latest deal will also trigger an open offer by Carlyle for 26% of shares of PNBHFL from public shareholders, which will be managed by HSBC Securities and Capital Markets. Shares of PNBHFL closed at INR 525.20 on the date of the deal announcement - May 31, 2021 - on the BSE, up 19.99% over the previous close of INR 437.70. Established in 1988, PNBHFL is the fourth largest housing finance company in India in terms of Loan Assets (INR 62,255 crore as of March 31, 2021), and the second largest in deposits (INR 17,129 crore as of March 31, 2021). PNBHFL will use the fresh funds to augment capital adequacy, reduce gearing and accelerate growth in the retail segment.

From the Venture Intelligence PE-VC Deal Database: PNBHFL had attracted over $275-M from General Atlantic between Nov-16 to May-18. Carlyle had held an indirect stake in PNB Housing since 2015 and a direct stake since Mar 2017. The company had IPO-ed in 2016. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)