According to Moneycontrol, on August 3, the government-run Punjab National Bank (PNB)’s Managing Director (MD) and CEO, C. S. Mallikarjuna Roa, said in a media conference call that the bank had never objected to PNB Housing Finance Ltd.’s (PNBHFL) ₹4,000-crore deal with Carlyle. However, it had asked its subsidiary to follow the directions of SEBI (Securities and Exchange Board of India).
The CEO added, “When SEBI issued the letter, we asked the board to restructure the deal in line with the same.” He assured that the bank would follow all the directions issued by the Securities Appellate Tribunal (SAT) for the matter.
Moneycontrol reported that, previously, SEBI had directed the housing finance to halt the proposed deal until the company undertakes a fresh valuation from an independent valuer but later, the SAT permitted the company to hold the Annual General Meeting and asked it to not announce AGM’s results till a final order. The tribunal’s order is still pending in this case.
Moreover, SEBI stated that the notice given on May 31 for an Extraordinary General Meeting was ultra-vires of the AoA (Articles of Association) and should not be acted upon until the company had undertaken the valuation of shares as prescribed under 19(2) of AoA, for preferential allotment from an independent registered valuer in accordance with the provisions of applicable laws. “The said report shall be considered by the company’s board while deciding on the preferential issue of shares and warrants”, it continued.
On May 31, PNBHFL announced the Carlyle Group, as well as its affiliates, existing investors and Puri family’s investment vehicle, would collectively invest up to ₹4,000 crore in the company.
The housing finance had moved SAT after SEBI’s stay on the transaction.
