PNB Housing raises Rs 2,494 cr from rights issue for business growth
PNB Housing Finance promoted by Punjab National Bank (PNB) has raised Rs 2,494 crore rights issue to finance business growth.
The issue closed on April 27, 2023, PNB Housing Finance said in a statement.
The company intends to use the net proceeds of the issue to increase its capital base.
After the issuance of the rights, the contribution of PNB as a promoter of the company will decrease from the current level of 32.53 percent to less than 30 percent, but will be higher than 26 percent so that the bank will retain the status of the promoter.
In March 2022, the board of directors of PNB Housing approved a rights issue of Rs 2,500 crore and in November last year, the board cleared a draft offer letter which was to be submitted to Sippy.
PNB Housing was looking to raise equity capital of Rs 4,000 crore and entered into a deal with joint venture partner The Carlyle Group, among other investors, in May 2021. However, in October 2021, the mortgage lender decided to finalize the Rs 4,000 crore. Sale of a stake due to delays due to pending legal proceedings.
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First published: April 29, 2023 | 11:06 p.m ist