IGI Logo

PNB Housing Finance Ltd on Monday announced that its board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to The Carlyle Group Inc.

Pluto Investments S.a.r.l., an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P., 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, the bank said in a regulatory filing.

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 SEBI's 'Takeover Regulations', the proposed transaction will trigger a mandatory open offer by Pluto Investments S.a.r.l. for the purchase of up to 26 per cent 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 & Managing Director of HDFC Bank, will also invest in the capital raise.

Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee Director in due course.

Established in 1988, PNB Housing Finance is the fourth largest housing finance company in India in terms of loan assets (Rs 62,255 crore as of March 31, 2021), and the second largest in deposits (Rs 17,129 crore as of March 31, 2021).

Favorable demographics, rising urbanisation, lower interest rates, continued improvement in housing affordability and supportive government policies are promoting growth across the industry, which is expected to continue into the near future, the filing said.