Setting aside SEBI’s direction, the Securities Appellate Tribunal (SAT) on Monday allowed PNB Housing Finance to go ahead with the shareholders’ meeting on Tuesday to consider the proposed ₹4,000 crore-investment by private equity firm Carlyle and others in the mortgage firm.
However, results of the shareholders’ voting will not be disclosed till further directions from the tribunal.
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The ruling comes hours after PNB Housing informed stock exchanges that it had appealed against SEBI’s direction on June 18 wherein it was asked to defer consideration of the proposed capital infusion proposal till a valuation of the company’s shares is done by a registered independent valuer.
The Extraordinary General Meeting (EGM) is scheduled for Tuesday.
SEBI had not only restrained PNB Housing from going ahead with voting on the proposal but also directed that the matter should be placed afresh before the company’s board of directors and a decision be taken on the basis of the independent valuation.
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Under the deal, PNB Housing will allot securities worth ₹4,000 crore to Carlyle group and other entities, a deal that will eventually result in the private equity firm becoming a major shareholder.
On Monday, the shares of PNB Housing Finance declined 5% to ₹702.40 apiece, its lower circuit limit, on the BSE.