Deal pricing in line with practice, law: PNB HF

Amid concerns raised in certain quarters about its proposed ₹4,000 crore-deal with Carlyle group, PNB Housing Finance (PNB HF) on Wednesday said the process followed in determining the issue price for its securities was in line with the “market practice” followed by listed firms and in compliance with applicable law.

Responding to clarifications sought by the stock exchanges on Monday regarding the deal, the company — a subsidiary of Punjab National Bank — also emphasised that pricing was not required to be based on a valuation report from a registered valuer and that the final price was higher than the floor price suggested by registered valuers.

The company also stressed that the price was arrived at after due consideration and weighing of various relevant factors, and hence the pricing for the preferential issue had been determined in compliance with the applicable law.

If it goes through, the deal — announced in May and subject to approvals — would also see Carlyle group taking controlling stake in PNB Housing Finance.

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Printable version | Aug 3, 2021 10:06:06 AM |

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