Team News Riveting
Mumbai, May 31
The board of non-banking lender PNB Housing Finance approved a capital raise of Rs 4,000 crore led by entities affiliated to US-based private equity firm Carlyle Group.
Pluto Investments S.a.r.l., an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P. (together, “Carlyle”) has agreed to invest up to Rs 3,185crore through a preferential allotment of equity shares and warrants, at a price of Rs 390 per share, the PNB Housing Finance today said in a regulatory filing.
Existing shareholders of the Company, funds managed by Ares SSG and General Atlantic, are also participating in the capital raise. PNB will continue to be the Promoter and a key stakeholder in the Company. Pursuant to the Securities and Exchange Board of India’s Takeover Regulations, the proposed transaction will trigger a mandatory open offer by Pluto Investments S.a.r.l. for the purchase of up to 26 per cent equity shares of PNB Housing Finance from public shareholders.
As part of this transaction, Salisbury Investments Pvt. Ltd., the family investment vehicle of Aditya Puri, Senior Advisor for Carlyle in Asia and the former CEO and Managing Director of HDFC Bank, will also invest in the capital raise. Aditya Puri is expected to be nominated to the PNB Housing Finance Board as a Carlyle nominee Director in due course.
Established in 1988, PNB Housing Finance is the fourth largest housing finance company in India in terms of Loan Assets (Rs 62,255crore as of March 31, 2021), and the second largest in deposits (Rs 17,129 crore as of March 31, 2021). Favorable demographics, rising urbanization, lower interest rates, continued improvement in housing affordability and supportive government policies are promoting growth across the industry which is expected to continue into the near future.
The key objective of raising capital is to augment capital adequacy, reduce gearing and accelerate growth with a focus on retail housing including self-employed and affordable housing loans such as the Unnati segment.
