PNB Housing Finance intents to raise 35,000 cr debt capital
After battling legal hurdles in the Carlyle group deal, PNB Housing Finance is now planning to raise 35,000 crore debt. Now, the company would seek shareholders' approval in its annual general meeting (AGM) that is to be held on September 3, 2021, states PNB Housing Finance in a regulatory filing.
Furthermore, the company states that it would seek shareholders' permission for further fund raising by way of debt concern.
In a filing, it states, ''Shareholders' approval is being sought in the 33rd AGM for further fund raising by way of debt issue and the shareholders are being requested to authorise the board of directors to offer, from time to time, the subscription of redeemable, secured/unsecured non-convertible debentures aggregating to 35,000 crore in one or more tranches.''
The Carlyle-led deal has been announced on May 31, in which a bunch of investors that include former HDFC Bank MD&CEO Aditya Puri's family investment vehicle Salisbury Investments, were to inculcate equity capital in PNB Housing. Aditya is also a senior advisor for Carlyle in Asia.
However, the deal soon got into a controversy post a proxy advisory firm raised issues and said it would harm the interest of the minority shareholders and the promoter. Later, Sebi asked the firm to get the valuation of the issue price done from an independent registered valuer, while the company approached the SAT in June, citing it followed the Sebi guidelines on deciding on the price.
The two-member bench of Justice Tarun Agarwala and Justice M T Joshi says, ''In view of the difference of opinion between the members of the bench ''we direct the interim order dated 21st June, 2021 to continue till further order.''
Prevalence of interim order means the company can't disclose the results of the shareholders' voting that happened on June 22, to know if they cleared the proposal with requisite majority or Not.The Company has been looking to raise funds for the past few years. Also, the Reserve Bank of India earlier this year had barred PNB from infusing capital into its subsidiary.
The Carlyle matter is probable to reach the Supreme Court since the tribunal did not provide a clear verdict on the way forward for the deal.
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