PNB Housing Finance to raise Rs 1,700 crore via QIP

PNB Housing Finance's board of directors on Tuesday approved raising up to Rs 1,700 crore through qualified institutions placement (QIP) route.

"In addition, the board also considered it advisable, subsequent to the successful closure of the QIP, to offer Quality Investment Holdings and/or its affiliates/nominees a preferential allotment of equity shares and/or permissible securities (including convertible securities/warrants) of the company," PNB Housing Finance said in a statement.

The preferential allotment to Quality Investment Holdings -- an investment vehicle of the Carlyle Group -- is subject to conditions, including the terms of the preferential issue being no less favourable than those offered to QIP investors.

"It is clarified that Quality Investment Holdings is not obligated to subscribe in the preferential issue at this stage. Should it choose to participate, Quality Investment Holdings can subscribe to at least such number of agreed securities in the preferential issue as required to maintain its pre-QIP shareholding in the company," PNB Housing Finance said.

PNB Housing's asset base comprises retail loans and corporate loans. The retail business focusses on organised mass housing segment financing for acquisition or construction of houses.

It also provides loan against properties and loans for purchase and construction of non-residential premises.