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PNB Housing Finance share hits lower circuit of 5% after Sebi halts deal with Carlyle

PNB Housing Finance share hits lower circuit of 5% after Sebi halts deal with Carlyle

Stock of PNB Housing Finance fell 5% to Rs 702.4 against previous close of Rs 739.95 on BSE

PNB Housing Finance share has lost 6.36% in the last 2 days. The midcap stock opened with a loss of 5% today.  Since then, the share is stuck in the lower circuit of 5%. PNB Housing Finance share has lost 6.36% in the last 2 days. The midcap stock opened with a loss of 5% today. Since then, the share is stuck in the lower circuit of 5%.

PNB Housing Finance share hit its lower circuit of 5% today after market regulator Sebi asked the firm not to go ahead with its Rs 4,000-crore capital raise plan led by Carlyle group. Stock of PNB Housing Finance fell 5% to Rs 702.4 against previous close of Rs 739.95 on BSE. The stock has lost 6.36% in the last 2 days. The midcap stock opened with a loss of 5% today.  Since then, the share is stuck in the lower circuit of 5%.

The stock trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

In one year, the stock has gained 224.51% and risen 92.76% since the beginning of this year.

In a month, the stock has climbed 68.89%.

Market cap of the firm fell to Rs 11,836 crore. Total 2,845 shares changed hands amounting to turnover of Rs 19.99 lakh  on BSE. The share hit its 52-week high of Rs 924 on June 8, 2021 and 52 week low of Rs 193.20 on July 16, 2020.

The Securities and Exchange Board of India (SEBI) has instructed Punjab National Bank Housing Finance (PNBHF) to halt its proposed Rs 4,000-crore deal with Carlyle Group.

SEBI halts Rs 4,000 cr Carlyle-PNB Housing deal

The capital markets regulator restrained the housing finance company from going ahead with shareholders' voting on the deal, directing the company to conduct the valuation process as per the relevant applicable legal provisions.

The deal, which came under SBI and RBI's lens, following concerns expressed in certain quarters, including by a proxy advisory company, would ultimately see US-based private equity giant Carlyle Group taking control of PNB Housing Finance, a subsidiary of Punjab National Bank.

Meanwhile, PNB Housing Finance has reached the Securities Appellate Tribunal (SAT), filing an appeal against the letter by Sebi asking it not to go ahead with its Rs 4,000-crore capital raise plan led by Carlyle group.

"Please note that company has filed an appeal before the Securities Appellate Tribunal against the letter issued by the Sebi on June 18, 2021," the firm said in a filing on Monday.

The company's EGM is scheduled for June 22 to seek shareholders approval for the proposal among others.

The firm's capital raise plan through issuance of preference shares and warrants has come under the scanner, with concerns raised about hurting interest of minority shareholders as well as the issue price being fixed much lower than the prevailing market price of the stock.