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PNB sells 26% in housing finance arm to Destimoney

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BS Reporter New Delhi
Last Updated : Jan 21 2013 | 12:54 AM IST

Punjab National Bank (PNB) has sold 26 per cent stake in its wholly owned housing subsidiary, PNB Housing Finance, to financial services firm Destimoney Enterprises for Rs 79.17 crore.

The bank has sold 78 lakh shares of the company at Rs 101.5 each. Destimoney will bring an additional Rs 137 crore to PNB Housing Finance, increasing its stake up to 49 per cent, while PNB will retain its majority at 51 per cent. The total size of the deal with Destimoney is Rs 217 crore.

“This augmentation of capital in the first instance will be in the form of unsecured convertible debt. The debt will get converted into equity at Rs 101.50 a share as per the capital requirement of the housing finance company over a period of two years,” PNB Chairman and Managing Director KR Kamath told reporters here after signing an agreement with Destimoney on Wednesday.

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First Published: Dec 10 2009 | 12:37 AM IST

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