NEW DELHI: The board of PNB Housing Finance has approved a capital raise plan of Rs 4,000 crore through preferential issue of equity shares and warrants, the company said in a media release.
Pluto Investments, an affiliated entity of Carlyle Asia Partners IV, L.P. and Carlyle Asia Partners V, L.P, has agreed to invest up to Rs 3,185 crore through a preferential allotment of equity shares and warrants, at a price of Rs 390 per share.
Existing shareholders of the Company, funds managed by Ares SSG and General Atlantic, are also participating in the capital raise.
"The current fund raise and planned strengthening of the Board and management team will enable us to accelerate our strategic priorities, including further expanding our footprint, driving the Company’s digitalization, improving our operating model and customer engagement," said Hardayal Prasad, managing director and CEO of PNB Housing Finance.
The proposed transaction will trigger a mandatory open offer by Pluto Investments for the purchase of up to 26% equity shares of PNB Housing from public shareholders.
Salisbury Investments, family investment vehicle of Aditya Puri, former CEO & MD of HDFC Bank is also investing in the capital raise. Puri is expected to be nominated to the PNB Housing Finance board as a Carlyle nominee director in due course.
The key objective of the capital raise is to augment capital adequacy, reduce gearing and accelerate growth in retail segment. The capital adequacy ratio of the company as of March 31, 2021 would increase from 18.7% to over 28% and gearing as of March 31, 2021 will decline from 6.7x to less than 5x.