Carlyle Group to acquire controlling stake in PNB Housing Finance

 Aditya Puri to come on board; Carlyle to appoint a chairperson

Private equity firm Carlyle Group and associates will acquire a controlling stake of over 50 per cent in PNB Housing Finance by investing in the Rs 4,000 crore preferential issue of equity and warrants of the Delhi-based mortgage lender.

After the proposed transactions, expected to be completed by January 1, 2022, Carlyle will also have the right to nominate the chairperson of PNB Housing Finance (PNB HF). This right will continue as long as it holds at least 40 per cent of the share capital on a fully diluted basis.

Pluto Investments, an affiliate of Carlyle Asia Partners, will invest up to Rs 3,185 crore through a preferential allotment of equity shares and convertible warrants at Rs 390 per share, for a 30.2 per cent in PNB HF’s expanded capital.

Quality Investment Holdings (QIH), a unit of Carlyle Group, currently holds 32.21 per cent of PNB Housing Finance. After the issue of shares and warrants, QIH's stake will stand reduced to 20 per cent on the expanded equity base.

Both QIH and Pluto are part of “The Carlyle Group”, a global entity.

Together, they will hold 50.2 per cent in PNB HF.

Public sector lender Punjab National Bank (PNB) will continue to be a promoter and a key stakeholder in the company. It held a 32.65 per cent stake in the company as of March 31, 2021. Its stake will fall to 20.3 per cent in the expanded capital base.

Along with Carlyle Group, Aditya Puri, former managing director of HDFC Bank, will infuse capital into PNB Housing Finance through family investment firm Salisbury Investments. He will be Carlyle’s nominee director in due course.