‘SAT order to set future course of action’
Asserting that there was no error of judgment with regard to the fund-infusion decision of PNB Housing Finance Company (PNB HFC), Punjab National Bank MD S. S. Mallikarjuna said the future course of action would depend on SAT’s order.
The Securities Appellate Tribunal (SAT), after hearing all parties related to PNB Housing Finance-Carlyle deal, has reserved its orders. PNB currently holds a 32.6% stake in PNB HFC.
Under the deal announced on May 31, the U.S.-based Carlyle, alongside other investors, is slated to infuse ₹4,000 crore capital into PNB HFC through the issue of preference shares and warrants.
However, the deal has come under the scanner of capital markets regulator SEBI. The firm was told to carry out the share-valuation process as per legal provisions. PNB HFC contended it had followed SEBI norms in deciding the issue price at ₹390 apiece.
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