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PNB Housing Finance has said that its parent Punjab National Bank has asked it to consider restructuring its 4,000 crore capital-raising deal with investors led by Carlyle Group. The deal, involving an allotment of preference shares and warrants, was flagged by the Securities and Exchange Board of India, which had asked it to have its equity revalued, only to see the realty lender lodge an appeal against this directive with the Securities Appellate Tribunal.

Minority investors have been worried that control was being sold off without a due premium for that privilege. On Thursday, shares of PNB Housing closed at 720.55 each on the BSE. This is about 85% higher than the proposed issue price. As a major chunk of this price difference is on account of the stock’s rise after the deal was announced, it is perceived as a proxy for the extra money that Carlyle-led buyers must pay for gaining a majority stake in the financier. It’s time for its board to get an independent valuation done, as directed by our regulator of capital markets, and suspend the takeover until clarity is obtained on its worth. It’s partly owned by a state-owned bank, after all, and its sale price is thus a matter of public concern.

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