PNB HFC raising up to Rs 4,000 cr in equity; Carlyle group among investors

Aditya Puri, former CEO of HDFC Bank will also infuse capital transactions.

A clutch of investors led by private equity firm Carlyle group will raise up to Rs 4,000 crore for PNB Housing Finance Company.

Pluto Investments, an affiliate of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners, has invested up to Rs 3,185 crore through a preferential allotment of equity shares and warrants, at a price of Rs 390 per share. Aditya Puri, former chief executive of HDFC Bank will also infuse capital transactions through the family investment firm.

PNB Housing’s board has approved a capital raise of up to Rs 4,000 crore, said the company in a statement filed with BSE. Its stock was trading up 20 per cent at Rs 525.2 per share on BSE.

The company’s existing shareholders are participating in the capital raise as well. PNB Housing 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.

This proposed transaction would also trigger an open offer by Pluto Investments to purchase up to 26 per cent equity shares of PNB HFC from public shareholders.

PNB Housing 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).

Ares SSG and General Atlantic are managing the fund raising.