The Securities and Exchange Board of India (SEBI) has written to PNB Housing Finance to stop the proposed share sale programme.
This comes after an announcement for an investment of Rs 4,000 crore in PNB Housing Finance was made by a group of investors on May 31. The group of investors was led by the Carlyle Group when it announced the investment.
According to reports, an investment of Rs 3,185 was announced by Pluto Investment S.a.r.l on May 31. Preferential allotment of shares and warrants at the price of Rs 390 apiece was decided as the process for investment. Some shareholders of the company are also participating in this capital raise plan.
In its regulatory filing, the company said that it received a letter from SEBI on June 18 directing the company to follow the legal provisions in the matter.
According to the company’s statement, Sebi has pointed out that the issue of securities of the company “is ultra-vires of the articles of association (AOA) and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws.”