PNB Housing Finance Ltd will receive a 4,000 crore investment from a group of investors led by American private equity firm The Carlyle Group and former HDFC Bank Ltd CEO Aditya Puri, the mortgage lender announced on Monday.
Carlyle would become PNB Housing’s biggest shareholder as a result of the capital infusion.
Via its affiliate Pluto Investments, Carlyle will invest up to Rs 3,185 crore in the form of a preferential allotment of shares and warrants valued at Rs 390 each. Existing shareholders will invest 400 crore, including a fund run by Ares SSG, and private equity company General Atlantic will invest 390 crore. Salisbury Investments Pvt. Ltd., Puri’s family investment vehicleAs part of the deal, Ltd will invest Rs. 25 crore. Puri, who retired from HDFC Bank in November and joined The Carlyle Group as a senior advisor, is expected to be elected to the board of PNB Housing as the private equity firm’s nominee director, according to a statement from the home lender.
The mortgage lender’s promoter will remain the state-run Punjab National Bank (PNB). Puri’s investment company, as well as Carlyle and its associates, will be listed as promoters. PNB Housing’s stock increased by the highest daily limit of 20% after the announcement, reaching 525.2 on the BSE.
Carlyle’s investment will give the PE firm a 30 percent stake on a completely diluted basis, while its current holding via Quality Investments will drop to 19.9%.According to filings, PNB’s stake will drop to 20.28 percent.
According to the filings, the proposed deal would trigger a mandatory open bid by Pluto Investments S.a.r.l. for the acquisition of up to 26 percent equity shares of PNB Housing Finance from public shareholders, as required by the Securities and Exchange Board of India’s takeover regulations. The result of the open offer will determine Carlyle’s shareholding in the company.
The capital adequacy ratio as of March 31 will rise from 18.7% to over 28 percent following the capital injection (including warrants).
