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No capital infusion by Punjab National Bank in housing finance subsidiary

PNB Housing Finance Ltd had informed about its plan to raise tier I capital up to Rs 1,800 crore through various modes including QIP, preferential issue of shares or a rights issue

Topics
Punjab National Bank | Housing Finance | PNB Housing Finance

Press Trust of India  |  New Delhi 

PNB, Punjab national bank
. The housing financier needs the funds to augment its capital base as well as to meet its general corporate purposes.

(PNB) will not participate in capital raise plans of its subsidiary, PNB Housing Finance, but the company will continue to scout for raising equity from other sources, according to a regulatory filing.

In August last year, PNB Ltd had informed about its plan to raise tier I capital up to Rs 1,800 crore through various modes including QIP, preferential issue of shares or a rights issue.

To this, PNB was awaiting approval from the Reserve Bank to infuse capital into PNB

"In this context, has communicated that it shall not be participating in the capital raise plans of the company. However, the company will continue to pursue the proposed capital raising plan through permitted modes," said in a regulatory filing.

The housing financier needs the funds to augment its capital base as well as to meet its general corporate purposes.

Earlier this month, PNB managing director and CEO S S Mallikarjuna Rao had said the bank was confident of getting RBI's nod for infusing capital into the subsidiary.

Managing Director & CEO Hardayal Prasad in an analyst call in January had also expressed confidence that the RBI will approve the proposal.

As of December 31, 2020, held 32.65 per cent stake in PNB Housing. PNB --as a promoter-- has to remain invested in the company with a minimum requirement of 26 per cent.

Foreign portfolio investors Investment Opportunities V Pte. Ltd and General Atlantic Singapore Fund Fii Pte Ltd held 9.92 per cent and 9.87 per cent stake respectively as of December 2020. The total public shareholding in the company stands at 67.35 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Sun, February 21 2021. 06:33 IST
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