PNB Housing Finance board to consider fundraising plan on November 2

Non-bank mortgage lender, PNB Housing Finance on October 20 said its board will consider the issuance of Non-Convertible Debentures on private placement basis aggregating up to Rs 2,000 crore in tranches on November 2 , it said in an exchange release.

The board will also approve financial results for July-September quarter on the same day.

This follows-up after the PNB Housing Finance and Carlyle had called off the proposed fund raise of Rs 4,000 crore on October 14 due to legal delays in the procedure.

Securities and Exchange Board of India had asked PNB Housing to halt the preferential allotment of shares and warrants to entities including Pluto investments, an affiliate of the Carlyle Group, General Atlantic, Salisbury Investments Private Ltd, and Alpha Investments.

PNB Housing challenged the SEBI's order at Securities Appellate Tribunal (SAT) which had passed a split verdict. Post which SEBI filed an appeal against the SAT verdict at the Supreme Court.

"There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues...in addition, regulatory approvals required for the Preferential Issue are pending and it is unclear whether such approvals will be forthcoming while the legal proceedings are ongoing," PNB Housing said on October 14.

The Board's primary objective is to raise capital to support the growth of the Company, and the Board believes that the current situation is not in the best interests of the Company and its stakeholders, it added.

Accordingly, at a meeting held today, the Board has decided not to proceed with the Preferential Issue and the share subscription agreements executed with the Proposed Allottees have been terminated in accordance with their respective terms, it said on October 14 in an exchange release.