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PNB to sell part stake in housing finance arm for Rs 1,852 crore

Both VardePartners and General Atlantic Group will buy 1.089 crore shares each at Rs 850 per share in the housing finance company

Subrata Panda  |  Mumbai 

Punjab National bank
Punjab National bank is an Indian multinational banking and financial services founded in 1894 | Photo: Shutterstock

State-run (PNB) is selling part of its stake in Housing to global private equity firm General Atlantic Group and alternative investment firm Varde Partners for Rs 1,851.60 crore.

After the transaction, will continue to hold a 19.78 per cent stake in the housing arm, and will remain the promoter and strategic shareholder of the company, the lender informed the stock exchanges on Friday. As of December 31, 2018, held 32.79 per cent in

PNB will sell 10.89 million equity shares each to General Atlantic and Varde Partners at Rs 850 per share, aggregating to Rs 1851.60 crore.

The stake sale is part of PNB’s strategy to raise money via divestment of stake in strategic investments and sale of non-core assets.

PNB offloads stake in PNB Housing Finance for Rs 1,851 crore

In July 2018, had informed the exchanges that PNB and Quality Investment Holdings (QIH) of the Carlyle Group were considering a joint stake of a minimum 51 per cent in the company. However, in November, the housing finance firm said PNB would independently pursue and proceed with the sale of its shareholding to financial investors via a competitive bidding process.

QIH, on the other hand, had decided to withdraw from the joint sale process.

QIH had stated it was considering all options, including restarting the sale process jointly or independently, depending upon market conditions, among other factors.

It had also mentioned that it might consider buying an additional stake in or participate in a potential sale process as a buyer.

As of December 31, 2018, QIH held 32.4 per cent in the company.

PNB was one of the five state-owned lenders who got shareholders’ approval on Thursday to issue and allot equity shares to the government for capital infusion, to the tune of Rs 5,908 crore.

PNB Housing Finance closed 4.36 per cent higher at Rs 865.70 on the BSE, compared to its previous close, while PNB closed 0.05 per cent higher at Rs 95.40.

First Published: Fri, March 29 2019. 12:52 IST