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    PNB awaits SAT order on Carlyle deal

    Synopsis

    “We await judgement by SAT for any implementation and we will be following that in letter and spirit,” PNB managing director SS Mallikarjuna Rao said on Tuesday in a media conference call, adding that the bank only asked its subsidiary to look into the Sebi’s directive.

    PNB---AgenciesAgencies
    "There was no error of judgement,” he said, adding that no one thought that the price would jump in subsequent days.
    Punjab National Bank (PNB) has said it will wait for the Securities Appellate Tribunal (SAT) order before taking any decision on the PNB Housing Finance-Carlyle deal. “We await judgement by SAT for any implementation and we will be following that in letter and spirit,” PNB managing director SS Mallikarjuna Rao said on Tuesday in a media conference call, adding that the bank only asked its subsidiary to look into the Sebi’s directive.

    PNB Housing Finance had moved SAT against a June 18 directive from markets regulator Sebi that held the ₹4,000-crore fund infusion deal “ultra-vires” of the company’s Articles of Association and asked it to seek a fresh valuation for the preferential allotment.

    Subsequently, PNB, on July 4, directed PNB Housing Finance to consider restructuring the proposed ₹4,000-crore capital infusion led by US-based Carlyle through preference shares and warrants.

    "It is not the question of going diametrically opposite of what we have done,” Rao said, defending the directive. “We have only told them that the Sebi communication may be looked into in terms of reconstruction of the entire process."

    Rao also defended the pricing of the issue. "There was no error of judgement,” he said, adding that no one thought that the price would jump in subsequent days.


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