The PNB Housing Finance and Carlyle deal could take an unexpected turn. Even as PNB Housing Finance held its much-awaited Extraordinary General Meeting (EGM) on Tuesday, to seek shareholders’ approval for a Rs 4,000 crore capital infusion into the company, led by US-based Carlyle Group, the outcome of the meeting is yet unknown.

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PNB has 32.6 percent votes, the private equity between them have almost about 50 percent of the remaining votes, and there is a small segment of public shareholders, who may want the preferential offer to go at a higher price. According to a newspaper report, PNB has vetoed the preferential offer to Carlyle. HP Ranina, Senior Advocate, Supreme Court, discussed the implications.

If PNB abstains from voting, then the preferential offer issue can go ahead, he said. It is only if PNB vetoes actively, there will be a problem with the preferential issue going ahead, he added.

“Securities Appellate Tribunal (SAT) may ask them to consider giving a higher price, but I don’t think SAT would be in a position to dictate any terms because it is the shareholders’ prerogative to decide what price to be charged,” Ranina said.

Under the proposed deal, PNB Housing Finance will allot securities worth Rs 4, 000 crore to Carlyle and other entities, a deal that will eventually result in the private equity major becoming a major shareholder of the company. On Tuesday, shares of PNB Housing Finance rose 4.99 percent to close at Rs 737.45 on BSE.

(With inputs from PTI)

For the full interview, watch the accompanying video.

(Edited by : Dipika)

First Published:Jun 23, 2021 10:42 AM IST