Sunday, June 26, 2022

PNB Housing to raise Rs 4,000 crore from Carlyle Group INC

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  • Carlyle subsidiary Pluto Investments will purchase 26 percent equity shares of PNB Housing Finance worth Rs 3,185 crore

  • PNB Housing Finance is India's fourth-largest housing finance company in terms of Loan Assets

New Delhi: PNB Housing Finance Limited 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. (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 (SEBI) 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 percent 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. Aditya Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee Director in due course. Over his 26 years tenure leading HDFC Bank, Puri grew the bank into the largest private sector bank in India and has been recognized globally as one of the world’s leading businesspersons.

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1. Gita Nayyar appointed as Additional Director on the Board of PNB Housing

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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). Favourable 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.

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