Share allotment: PNB Housing Finance erred in pricing, says Sebi

Regulator says allotment of shares did not conform to the company's articles of association

The Securities and Exchange Board of India (Sebi) on Friday told the Securities Appellate Tribunal (SAT) that the board of directors of PNB Housing Finance (PNB HF) had erred in approving the pricing for the preferential allotment of shares because it did not conform to the company’s articles of association (AoA).

The market watchdog was also critical of the valuation report furnished by the company, and said that it had merely indulged in a mathematical calculation of the floor price, without spelling out the valuation methodologies used to arrive at the price, which typically is the case when such an exercise