SAT Allows Shareholder Voting on PNB Housing's Preferential Issue
In a relief for PNB Housing Finance, the Securities Appellate Tribunal (SAT) has allowed voting by its shareholders on the proposed preferential issue worth Rs4,000 crore to entities led by The Carlyle Group Inc.
 
The extra-ordinary general meeting (EGM) of the company is scheduled for Tuesday.
 
However, the Tribunal has said that the results would not be declared and would be kept in a sealed cover.
 
The company would issue specific directions in this regard to the National Securities Depository Limited (NSDL), which is in charge of the electronic voting, not to reveal the results and keep the same in a sealed cover till further orders of this Tribunal, it said.
 
"Considering the aforesaid that no factual dispute exists and only an interpretation of the provisions of the ICDR Regulations and Companies Act read with Articles of Association is required to be considered, we direct the respondent to file a reply on or before 26 June 2021. Rejoinder, if any, may be filed by 4 July 2021. The matter would be taken for admission and for final disposal on 5 July 2021 as the first case in the cause list after the admission cases," SAT said in its order.
 
Earlier in the day, PNB Housing Finance had said that it has filed an appeal before the SAT against the SEBI directive to halt the company's proposed preferential issue.
 
In a letter date 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.
 
The capital market regulator had asked PNB Housing to undertake the valuation of shares from an independent valuer before moving ahead with the issue.
 
"The current resolution bearing item No. 1 (Issue of Securities of the company and matters related therewith) of EGM notice dated 31 May 2021, is ultra-vires of AOA (articles of association) and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws," SEBI had said in its letter.
 
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Comments
cjninan
3 months ago
I think the poor PNB Bank directors got bamboozled by the english speaking Carlyle directors and seeing in person the grandfather of Private Sector Bank - Aditya Puri. It happens - his mere presence makes people nervous and they will agree to whatever they ask - Price which is lower than the book value, losing the controlling stake. If it was the other way, Carlyle to sell their stake would have asked for the moon and our PNB Bank directors would have run to get them.
Doesnt Aditya Puri know all this - why try to shortchange the majority shareholders. The directors of PNB Housing too has not given a letter to their shareholders explaining why they think this deal was great. This shows one thing, for 30 silver coin, people are willing to sell their soul.
Thank you Proxyadvisory firm for bringing this out in the public. Shareprice offered which is less than the Book Value? Comeon Aditya Puri - This was not expected comming from you.
cjninan
3 months ago
I think the poor PNB Bank directors got bamboozled by the english speaking Carlyle directors and seeing in person the grandfather of Private Sector Bank - Aditya Puri. It happens - his mere presence makes people nervous and they will agree to whatever they ask - Price which is lower than the book value, losing the controlling stake. If it was the other way, Carlyle to sell their stake would have asked for the moon and our PNB Bank directors would have run to get them.
Doesnt Aditya Puri know all this - why try to shortchange the majority shareholders. The directors of PNB Housing too has not given a letter to their shareholders explaining why they think this deal was great. This shows one thing, for 30 silver coin, people are willing to sell their soul.
Thank you Proxyadvisory firm for bringing this out in the public. Shareprice offered which is less than the Book Value? Comeon Aditya Puri - This was not expected comming from you.
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