The board of PNB Housing Finance Ltd has terminated a Rs 4,000-crore fund raising deal with a Carlyle-led group of investors citing pending legal issues which may delay regulatory approvals.
Subsequently, Pluto Investments, a Carlyle entity will be initiating the process to withdraw an open offer made by them, the finance company said in a notice to stock exchanges.
The Securities and Exchange Board of India had asked PNB Housing to halt a preferential allotment of shares and warrants to entities including Pluto investments, an affiliate of the Carlyle Group, General Atlantic, Salisbury Investments Private Ltd. and Alpha Investments to raise Rs 4,000 crore.
Subsequently, PNB Housing had challenged the SEBI order at the Securities Appellate Tribunal which passed a split verdict. After this SEBI has filed an appeal against the SAT verdict at Supreme Court.
"There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues...in addition, regulatory approvals required for the Preferential Issue, are pending and it is unclear whether such approvals will be forthcoming while the legal proceedings are ongoing," PNB Housing said.
The cancellation of the capital infusion plan assumes significance as the deal, if executed, would have seen United States-based Carlyle Group taking control of the lender.
(This is a developing story. Please check back for more updates)