Carlyle Group to Become Majority Owner in PNB Housing Finance

PNB Housing Finance, a leading mortgage lender in India, is set to raise ₹4,000 crore from a clutch of investors led by the US private equity firm Carlyle Group. The capital infusion, which marks a turning point for the company, will result in Carlyle becoming a majority owner with a 54.3% stake. This move comes after a two-year wait for capital, during which PNB Housing has been looking to augment its capital adequacy and accelerate growth in the retail segment.

Key Takeaways:

• PNB Housing Finance is set to raise ₹4,000 crore from a clutch of investors led by Carlyle Group, resulting in Carlyle becoming a majority owner with a 54.3% stake.
• The capital infusion will augment capital adequacy, reduce gearing, and accelerate growth in the retail segment.
• Carlyle will contribute 80% of the fundraise, with the rest coming from funds managed by existing shareholders, including General Atlantic Singapore.
• The company's capital adequacy was at 18.7% ahead of the infusion.
• PNB Housing will hold 21.9% stake after the allotment of shares and share warrants.
• The takeover triggered an obligation on Pluto's part alongside Salisbury to make an open offer of a little above 70 million equity shares of PNB Housing, representing 26% of its expanded equity capital.
• The open offer is priced at ₹403.22 per share.
• The proposals will be placed for shareholders' approval on June 22.

Statistics:

• PNB Housing Finance has ₹74,470 crore in assets under management (AUM).
• Housing Development Finance Corp (HDFC), the promoter of HDFC Bank, has AUM of ₹5.7 lakh crore at the end of March.
• Carlyle's contribution to the fundraise is capped at 80%.
• The open offer will buy 26% of PNB Housing's expanded equity capital.
• The total number of shares on offer is 70 million, priced at ₹403.22 each.

Sources:

• The Economic Times
• PNB Housing Finance regulatory filing
• Business Standard
• CNBC-TV18