SAT allows PNB Housing Finance to withdraw appeal in Carlyle deal

PNB Housing Finance on Wednesday said the Securities Appellate Tribunal has allowed it to withdraw its appeal in the matter related to the Rs 4,000 crore Carlyle deal, which stands scrapped now

PNB Housing Finance on Wednesday said the Securities Appellate Tribunal (SAT) has allowed it to withdraw its appeal in the matter related to the Rs 4,000 crore Carlyle deal, which stands scrapped now.

Relating to the application filed by the company before the Securities Appellate Tribunal, seeking permission to withdraw the appeal, SAT in its hearing on November 16, 2021 allowed the company to withdraw its appeal, PNB Housing Finance said in a regulatory filing.

Last month, the company said it has cancelled the equity capital infusion led by US-based Carlyle group.

Soon after the preference issue of shares was announced in May this year, controversy erupted with regard to the valuation of the shares to be offered to the investors and the capital markets regulator Sebi intervened and stalled the deal until there was revaluation of the shares.

In turn, PNB Housing Finance approached the SAT which gave a split verdict in August. Sebi approached the Supreme Court, however, PNB Housing Finance decided to nix the deal rather than to get involved in a legal battle.

The board has decided not to proceed with the preferential issue and the share subscription agreements executed with the proposed allottees have been terminated in accordance with their respective terms, PNB Housing Finance said in October.

PNB Housing Finance has kept the capital raise plan open and it will keep exploring the market, the company's MD&CEO said earlier this month.

Company shares settled at Rs 462.80 apiece on BSE, down 0.83 per cent from the previous close.