PNB Housing Finance at 20% UC

PNB Housing Finance, which had closed on Friday at Rs.437.70, opened today at Rs.440 and soon hit the 20% UC of the day at Rs.525.50, a new high too, where it now remains frozen.

The stock hit the roof today after it’s Board approved Rs.3185 crore investment by Pluto Investments S.a.r.l, an entity affiliated to the Carlyle Group Inc.

This is through a preferential allotment of equity shares and warrants, at a price of Rs.390/share.

The Carlyle Group has also made an open offer to acquire 7.1 crore shares of PNB Housing Finance, which is 26% of the expanded voting share capital, at a price of Rs 403.22/share from the shareholders of the company.

The 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.

As part of this transaction, Salisbury Investments Pvt. Ltd., the family investment vehicle of Aditya Puri, also a Senior Advisor for Carlyle in Asia and the former CEO & Managing Director of HDFC Bank, will also invest in the capital raise.

News is that Aditya Puri will also get nominated to the PNB Housing Finance’s Board as a Carlyle nominee Director eventually.