Home / News / India /  Sebi moves Supreme Court against SAT order on PNB Housing Fin's 4,000 cr preference issue

PNB Housing Finance on Thursday said capital markets regulator Sebi has approached the Supreme Court against the Securities Appellate Tribunal's order in the matter related to the company's 4,000 crore equity capital raise plan.

Pronouncing its order on August 9, the two-member bench of the Securities Appellate Tribunal (SAT) gave a split verdict, saying there was difference of opinion between the members of the bench.

SAT directed that its interim order of June 21, 2021 will continue till further orders, restraining PNB Housing Finance from disclosing the voting results by the shareholders on the fund raise plan.

The voting was part of a special resolution to seek shareholders' approval for the 4,000 crore equity raise plan of PNB Housing by allotting preference shares and warrants to a handful of investors led by US-based private equity player Carlyle Group.

"It has been brought to our notice that SEBI has filed an appeal to the Supreme Court of India against the order of SAT," PNB Housing Finance said in a regulatory filing.

The company is examining the appeal filed by Sebi, it added.

On May 31, the housing finance company promoted by state-owned lender Punjab National Bank (PNB) had announced the capital raise plan.

However, it soon hit a roadblock after a proxy advisory firm red flagged the preference issue, contending it was not in the interest of the promoter and the minority shareholders of the company.

Soon after, Sebi intervened and asked the company not to go ahead with the plan until a valuation of its shares is done by an independent registered valuer.

PNB Housing Finance had fixed the preference issue price at 390 apiece, much lower than the stock price prevailing at that time.

However, the company defended the decision, saying it followed Sebi regulations while fixing the issue price.

On Thursday, share of PNB Housing Finance closed at 656.50 apiece on BSE, down 0.68 per cent from the previous close.

This story has been published from a wire agency feed without modifications to the text.

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