PNB Housing Finance told the media that the board has approved a capital raising plan of Rs 4,000 crore by preferential issue of equity shares and warrants.
Carlyle Asia Partners IV, LP, and Carlyle Asia Partners V, LP affiliated entity Pluto Investments, have accepted to invest up to Rs 3,185 crore by a preferential allotment of equity shares and warrants, at Rs 390 per share.
Ares SSG and General Atlantic are managing the funds and are also participating in capital raise.
PNB Housing Finance CEO and Managing Director Hardayal Parasd said that the current fundraising and intended strengthening of the Board and management team will allow us to stimulate our strategic priorities.
A mandatory open offer by Pluto Investments will be affected by the recommended transaction for the acquisition of up to 26% equity shares of PNB Housing from public shareholders.
Former CEO and MD of HDFC Aditya Puri family investment, Salisbury Investments are also investing in capital raise. Puri is foreseen to be chosen to the board of the PNB Housing Finance as a Carlyle nominee director in due course.
The main purpose of the capital raise is to increase capital sufficiency, decrease gearing and stimulate growth in the retail section. The capital adequacy ratio of the company as of 31 March 2021, would rise from 18.7% to above 28%, and gearing as of 31 March 2021.
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