PNB Housing Finance climbs 20% as Carlyle, Aditya Puri line up to buy stake

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Shares of PNB Housing Finance hit the upper circuit on Monday after the company informed bourses that the board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to The Carlyle Group.

The scrip jumped 20% to Rs 525.20 in the morning trade, while the benchmark BSE Sensex traded over 400 points higher at around 51,800.

In a regulatory filing, PNB Housing Finance said, “Pluto Investments Sarl, an affiliated entity of Carlyle Asia Partners IV, LP and Carlyle Asia Partners V, L.P. (together, “Carlyle”) has agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants, at a price of Rs 390 per share. Existing shareholders of the company, funds managed by Ares SSG and General Atlantic, are also participating in the capital raise. PNB will continue to be the promoter and a key stakeholder in the company.”

The transaction is subject to customary regulatory approvals as well as shareholder approval. Pursuant to the Securities and Exchange Board of India’s Takeover Regulations, the proposed transaction will trigger a mandatory open offer by Pluto Investments Sarl for the purchase of up to 26% equity shares of PNB Housing Finance from public shareholders.

As part of this transaction, Salisbury Investments Pvt. Ltd., the family investment vehicle of Aditya Puri, senior advisor for Carlyle in Asia and the former CEO and managing director of HDFC Bank, will also invest in the capital raise.

Aditya Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee director in due course. Over his 26 year tenure leading HDFC Bank, Puri grew the bank into the largest private sector bank in India and has been recognised globally as one of the world’s leading businesspersons.