PNB differs with PNB Housing over proposed Carlyle deal
PNB Housing Finance and its parent Punjab National Bank are on different pages when it comes to the housing finance company's proposed preferential issue worth Rs 4,000 crore to entities led by The Carlyle Group Inc.
The Punjab National Bank, in a letter on July 4, said that its board of directors is of the view that the board of PNB Housing Finance should take cognizance of SEBI's order and reconsider restructuring the deal in line with the regulator's directive.
"Further to deliberations on the PNB letter, the board of the company, by a majority resolution passed on July 6, 2021, decided that since the issue involved relates to interpretation of law and is sub-judice before the Securities Appellate Tribunal (SAT), the board will await the SAT's order on this issue," PNB Housing said in a regulatory filing on Wednesday.
The board of PNB Housing met on July 5 and 6 over the communication from the parent company.
The SAT will next hear the matter on July 12.
PNB Housing Finance had filed an appeal before the appellate tribunal against the capital market regulator SEBI's directive to halt the company's proposed preferential issue.
In a letter dated June 18, the Securities and Exchange Board of India (SEBI) directed PNB Housing Finance to stall the proposed preferential issue of shares to entities led by The Carlyle Group Inc. It had asked PNB Housing to undertake the valuation of shares from an independent valuer before moving ahead with the issue.
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