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    PNB Housing tanks 5% as Sebi halts Carlyle deal

    Synopsis

    PNB Housing Finance has reached the Securities Appellate Tribunal (SAT), filing an appeal against the letter by Sebi.

    PNB HOUSING
    Shares of PNB Housing Finance had more than doubled after the announcement of the deal.
    ETMarkets.com

    NEW DELHI: PNB Housing Finance's share hit lower circuit on Monday after the Sebi has restrained PNB Housing Finance from going ahead with shareholders' voting on the proposed Rs 4,000 crore-deal with Carlyle group.

    The watchdog said the resolution regarding the deal, which was to be put for shareholders' vote on June 22, was "ultra-vires" of the company's Articles of Association (AoA). Sebi has directed the company to carry out the valuation process as per the relevant legal provisions.

    Shares of the housing financiar tanked 5 per cent to Rs 702.40 on Monday. BSE Sensex was trading at 52,099.12, down by 245.33 points or 0.47 per cent at 10.25 am. The counter closed at Rs 739.35 on Friday.

    However, PNB Housing Finance has reached the Securities Appellate Tribunal (SAT), filing an appeal against the letter by Sebi. The company had informed stock exchanges about the Sebi letter on June 19 through a regulatory filing.

    The company's EGM is scheduled for June 22 to seek shareholders approval for the proposal among others. The company has fixed the issue price for the proposed fund raise at Rs 390 a piece.

    Shares of PNB Housing Finance had more than doubled after the announcement of the deal. The counter had rallied to Rs 924 on June 08, its new 52-week high, from Rs 437.7 on May 28. However, the counter has witnessed a sharp correction after as the uncertainty is looming over the deal.

    The firm's capital raise plan through issuance of preference shares and warrants has come under the scanner, with concerns raised about hurting interest of minority shareholders as well as the issue price being fixed much lower than the prevailing market price of the stock.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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