A proxy advisory agency has raised questions on the NBFC‘s resolution to increase funds by means of preferential concern of shares as an alternative of a rights concern, and termed it an “unfair transaction”.
Following the event, the inventory fell 4.43 per cent to hit a low of Rs 774 on BSE. With this, the scrip took its three-day fall to 12 per cent.
A senior govt of the general public sector financial institution (PSB) informed IANS that although there was no regulatory points with the transaction, extra readability may very well be sought on the contours of the deal. PNB is predicted to handle a number of the considerations raised on the deal on the shareholders’ meet scheduled subsequent month.
On May 31,
introduced the board approval to increase up to Rs 4,000 crore in a preferential concern, led by the prevailing investor Carlyle, topic to regulatory and shareholders’ approval.
Proxy advisory agency Stakeholders Empowerment Services (SES), in a report, has raised a variety of questions on the proposed deal, questioning if Punjab National Bank (PNB) has willingly surrendered management with out extracting a good compensation.
Asking if PNB sacrificed over Rs 2,000 crore, the report stated it’s an “unfair transaction, against public shareholders and PNB”. The deal is ‘extremely vires’ to the Articles of Association (AoA), it added.
Under the proposed deal, Rs 3,200 crore is to be raised via fairness shares and Rs 800 crore by issuance of warrants. Notably, PNB Housing Finance has not raised any fairness capital prior to now three years, besides fairness shares issued below the Employee Stock Option Plan.
An extraordinary basic assembly (EGM) of the shareholders of the housing financier is slated for June 22 to search their approval for the allotment of shares and warrants to the proposed traders, amongst others.