NEW DELHI: PNB Housing Finance on Tuesday said its board has approved raising up to Rs 1,700 crore through qualified institutions placement (QIP) route. The decision was taken at the company's board meeting held on March 3.
The board "has approved to raise equity capital aggregating up to Rs 1,700 crore through a QIP," it said in a regulatory filing. "In addition, the board also considered it advisable, subsequent to the successful closure of the QIP, to offer Quality Investment Holdings and/or its affiliates/nominees a preferential allotment of equity shares and/or permissible securities (including convertible securities/warrants) of the company," it added.
The preferential allotment to Quality Investment Holdings --an investment vehicle of the Carlyle Group -- is subject to conditions, including the terms of the preferential issue being no less favourable than those offered to QIP investors.
"It is clarified that QIH is not obligated to subscribe in the preferential issue at this stage. Should it choose to participate, QIH can subscribe to at least such number of agreed securities in the preferential issue as required to maintain its pre-QIP shareholding in the company," PNB Housing Finance said.
PNB Housing promoter Punjab National Bank (PNB) and Carlyle Group are to sell at least 51 per cent stake in the housing finance company, in which they are the joint investors.
As of December 31, 2019, PNB held 32.65 per cent stake in the company while QIH had shareholding of 32.22 per cent. The company's asset base comprises retail loans and corporate loans. The retail business focusses on organized mass housing segment financing for acquisition or construction of houses.
It also provides loan against properties and loans for purchase and construction of non-residential premises. Shares PNB Housing Finance closed at Rs 341.10 apiece on the BSE, up 0.84 per cent from the previous close.