homevideos Newsbusiness NewsPNB will continue to remain promoter in PNG Housing till it holds 20%, says CEO Mallikarjuna Rao
PNB will continue to remain promoter in PNG Housing till it holds 20%, says CEO Mallikarjuna Rao
PNB Housing Finance on Monday said its board has approved a proposal to raise up to Rs 4,000 crore by issuing equity shares and convertible warrants to entities led by Carlyle Group firms.
PNB Housing Finance on Monday said its board has approved a proposal to raise up to Rs 4,000 crore by issuing equity shares and convertible warrants to entities led by Carlyle Group firms. The company's board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to The Carlyle Group Inc, the company said in a regulatory filing.
The board also gave a nod for issuing and allotment of the securities by way of preferential allotment on a private placement basis, subject to the approval of the shareholders of the company and of such other regulatory/ governmental authorities as may be required, it added.
Speaking to CNBC-TV18, SS Mallikarjuna Rao, MD & CEO of Punjab National Bank (PNB), said PNB continues to remain a promoter till it holds 20 percent in PNB Housing.
“Carlyle is an investor; it cannot be a promoter. PNB has been a promoter and as per the Reserve Bank of India (RBI) guidelines, we can continue to be promoters even if our stake comes to around 20 percent,” he said.
He also said that for PNB, the valuation increase will be a benefit. “When there is a good amount of capital being infused, the company can do extremely well. Our investment in the company at around 20 percent – even though we are not diluting at this point of time, dilution is only resultant impact, and valuations will increase." "A couple of years back the price in the market was as high as Rs 1,700-1,600, whereas today it is around Rs 400-450 or Rs 500 at this point of time. So, we expect the valuations to increase,” he said.
Rao also said that PNB will continue to have 2 board members.
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(Edited by : Bivekananda Biswas)
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