Private Equity

PE-RE Fund Investments

Undone: SEBI halts PNB Housing Finance deal to raise Rs.4,000-Cr led by Carlyle

BSE Disclosure   Money Control  

The Securities and Exchange Board of India (Sebi) has directed New Delhi-based, publicly-listed Punjab National Bank Housing Finance (PNBHF) to halt its proposed INR 4,000 crore deal with Carlyle Group. It said the notice given by PNBHF on May 31 for an EGM on June 22 is "ultra-vires of Article of Association (AOA)." The valuation of shares must be done by an independent registered valuer, it added. Proxy advisory firm Stakeholders Empowerment Services (SES) had raised a red flag, saying the investment was weighed against the interests of the shareholders of both PNBHF and PNB because the deal had been struck at a valuation (INR 390 per share) less than even the book value of the company. But PNBHF said pricing is not required to be based on a valuation report from a registered valuer and that the final price is higher than the floor price suggested by registered valuers.