The Competition Commission of India (CCI) has approved Carlyle Group’s proposed Rs 4000 crore investment in
making it the majority shareholder, even as the Securities Appellate Tribunal is yet to give its judgement on the matter.
The share price of PNB Housing zoomed to hit the 5% upper circuit at Rs 720.45 on Wednesday.
The CCI received a notice relating to acquisition of equity stake in PNB Housing Finance by Pluto Investments, a group company of Carlyle, and Salisbury Investments, under Green Channel. “Notice received under the Green Channel is deemed to be approved under regulation 5A of the Competition Commission of India,” ministry of corporate affairs said in a note.
Pluto is a newly established special purpose vehicle incorporated under the laws of Luxembourg and does not have any business activities in India. It is majority owned and controlled by Carlyle Asia Partners.
Salisbury is a non-banking finance company and is primarily engaged in the business of making investments in financial securities, the ministry note mentioned.
The board of, the principal promoter of the mortgage lender, earlier told the home financier to consider repricing the initial deal and pay heed to Securities and Exchange Board of India’s objections to it. In response, PNB Housing had said it would wait for the appellate court order on the matter. SAT has heard the counsel of both Sebi and PNB Housing but is yet to give its judgement.
The market regulator has told PNB Housing to do an independent valuation on the pricing of the deal.
The board of PNB Housing on May 31 approved placement of 82 million preferential equity shares and 20.5 million share warrants with Pluto Investments, a Carlyle Group company, and Salisbury Investments, the family investment vehicle of former HDFC Bank MD Aditya Puri. General Atlantic Singapore Fund FII Pte Ltd and Alpha Investments V Pte Ltd are the other proposed investors.
Carlyle led the capital infusion with 80% contribution. The issue price for the deal was Rs 390 per share, while the stock jumped to Rs 880 apiece within a few days of the announcement.
