PNB Housing Finance share price spiked 20 percent to hit a upper circuit of Rs 525.20 on BSE after the company said its Board has approved a capital raise of up to Rs 4,000 crore, led by entities affiliated to American private equity firm Carlyle Group Inc.
Pluto Investments S.a.r.l., an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P. had agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants at a price of Rs 390 a share, the company said in an exchange 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," it added.
The transaction is subject to customary regulatory approvals as well as shareholder approval. 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 percent equity shares of PNB Housing Finance from public shareholders, the bank further added.