Securities Appellate Tribunal (SAT) has issued an interim order in PNB Housing-Carlyle deal. PNB Housing Finance has reached the SAT, filing an appeal against the letter by market regulator asking it not to go ahead with its Rs 4,000-crore capital raise plan led by Carlyle group.
According to a CNBC TV 18 post, this interim order by SAT will allow PNB Housing Finance to carry out EGM on June 22. However, it directs PNB Housing to not release results of shareholder voting.
The next hearing will be held on July 5.
On June 18, Securities and Exchange Board of India (Sebi) had written a letter to the company asking it to ensure compliance before going ahead with the proposal. The company had informed stock exchanges about the Sebi letter on June 19 through a regulatory filing.
"Please note that the company has filed an appeal before the Securities Appellate Tribunal against the letter issued by the Sebi on June 18, 2021," it said in a filing on Monday.
The company's EGM is scheduled for June 22 to seek shareholders approval for the proposal among others.
The firm's capital raise plan through issuance of preference shares and warrants has come under the scanner, with concerns raised about hurting interest of minority shareholders as well as the issue price being fixed much lower than the prevailing market price of the stock.
The company has fixed the issue price for the proposed fund raise at Rs 390 a piece. The share price of PNB Housing Finance at present is in the range of Rs 700 per share.
Last week, it said the process followed by the company in determining the issue price for its proposed Rs 4,000 crore preference shares was "in line with the market practice" followed by listed companies.