Shares of PNB Housing Finance dived as much as 5 per cent on Monday to hit the lower circuit limit after the mortgage lender called off fund-raising deal with a group of investors, led by private-equity firm Carlyle Group.
PNB Housing, in a notification to the exchanges on Thursday, informed that it has decided not to proceed with the deal after the plan was delayed due to pending legal proceedings.
The mortgage lender said that it has ended the deal — announced in May to issue shares worth Rs 4,000 crore to Carlyle-led investors — after a long legal battle with India’s markets regulator, the Securities and Exchange Board of India (SEBI).
Comment from PNB
“There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues,”
Pluto Investments, a Carlyle Group entity, will now begin the proceedings to withdraw the open offer made by them, it added.
The share subscription agreements executed with the proposed allottees have been terminated.
PNB challenged SEBI’s order
PNB Housing Finance had challenged SEBI’s order by approaching India’s Securities Appellate Tribunal (SAT).
SAT in August delivered a split verdict, restricting the company from disclosing the results of shareholder votes on the deal.
PNB Stock
PNB Housing Finance’s stock had more than doubled after the deal was announced in May this year. Currently, the stock has plunged Rs 31.95 to Rs 607.10
with today’s fall, the share price of PNB Housing Finance has slipped 34 per cent from its 52-week high level of Rs 924 touched on June 8, 2021.
Till 10:51 am; a combined 48,073 equity shares had changed hands and there were pending sell orders for 762,806 shares on the NSE and BSE. In comparison the S&P BSE Sensex was up 0.85 per cent at 61,830.
What is lower circuit?
Lower circuit is the minimum price to which a stock can fall in a single trading day.
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