PNB Housing against Sebi order
PNB Housing Finance has filed a petition against a Securities and Exchange Board of India verdict that prohibited it from seeking shareholder approval for a Rs 4000-crore capital infusion agreement with The Carlyle Group and other investors. In a press release, the company stated, “The company has filed an appeal before the Securities Appellate Tribunal against the letter issued by Sebi on June 18.”
The resolution linked to the transaction, according to Sebi, is in violation of the company’s Articles of Association, and the company must conduct an exchange of contracts of the business. The agreement was set to be approved at a shareholder’s meeting on June 22.
Apart from the founding promoter Punjab National Bank NSE 3.47 per cent, Carlyle and Salisbury Investments, a family asset class of former HDFC Bank NSE 0.60 basis points chief executive Aditya Puri, are likely to be the new promoters of the company following the proposed capital infusion.
PNB Housing said on June 19 that “the firm and its board of directors continue to believe the pricing of the deal is in conformity with all relevant laws and standards.”It had stated that “preferential allotment is in the best interests of the corporation, its shareholders, and other relevant stakeholders.”
The deal has been investigated by regulators after certain elements of the investment industry, notably a proxy advising firm, made complaints about the PNB Housing Board’s impartiality.