Shares of PNB Housing Finance on Monday dived 5 per cent to their lower circuit limit after the company said it has aborted the Rs 4,000 crore-share sale plan to US-based private equity firm Carlyle Group and others.
The stock tumbled 5 per cent to its lower circuit limit of Rs 607.10 on BSE. On NSE, it declined 4.99 per cent to its lower circuit of Rs 606.75.
Amid legal hurdle, PNB Housing Finance on Thursday said it has aborted its Rs 4,000 crore-share sale plan to US-based private equity firm Carlyle Group and others.
The deal got mired into legal tangles on matters of valuation. The capital markets regulator Sebi last month approached the Supreme Court against the Securities Appellate Tribunal's order in the matter related to the company's Rs 4,000 crore equity capital raise plan. The matter is pending before the apex court.
“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 a regulatory filing.
The board's primary objective is to raise capital to support the growth of the company, and the board believes that the current situation is not in the best interests of the company and its stakeholders, it said.
(With PTI Inputs)