India’s PNB Housing dives 5% after scrapping fundraising deal with Carlyle

Photo: Reuters

Shares of India’s PNB Housing Finance Ltd fell 5% on Monday to their lowest since early June after the mortgage lender scrapped a fund-raising deal with a group of investors, led by private equity firm Carlyle Group.

PNB Housing Finance said late Thursday that it had ended the deal, which was announced in May to issue shares worth 40 billion rupees ($533.2 million) to Carlyle-led investors, after a months-long legal battle with India’s markets regulator, the Securities and Exchange Board of India (SEBI).

The deal had been challenged by the SEBI following an institutional investment advisory firm’s statement that the deal was unfair to minority shareholders. The regulator had asked the company to stall it until it undertook an independent valuation.

PNB Housing Finance had challenged SEBI’s order by approaching India’s Securities Appellate Tribunal (SAT). SAT in August delivered a split verdict, restricting the company from disclosing the results of shareholder votes on the deal.

“There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues,” PNB Housing Finance said on Thursday.

ICICI Securities said in a note that concerns related to asset quality and growth have re-emerged with deal being called off.

PNB Housing Finance’s stock had more than doubled to a two-year high of 925 rupees after the deal was announced in May. It has since given up a portion of those gains and last traded at 606.75 rupees.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.