PNB Housing Finance has appealed against the Securities & Exchange Board of India preventing the lender from seeking shareholder approval for its Rs 4000 crore capital injection agreement with Carlyle Group and other investors.
The regulatory filing said that the company filed an appeal before the Securities Appellate Tribunal because of the letter issued by SEBI on 18th of June.
SEBI had said the resolution related to the transaction was against the company’s articles of association and that the company must conduct an independent assessment of the deal. A shareholders’ meeting was scheduled for June 22nd to approve the transaction.
Following the proposed capital injection, Carlyle and Salisbury Investments, a family investment vehicle of former HDFC Bank CEO Aditya Puri, will become the company’s new promoter, in addition to the original promoter of Punjab National Bank.
“The company and its board of directors continue to believe that the price of the agreement complies with all relevant laws and regulations,” said PNB Housing on June 19th. “The preferential allocation is in the best interests of the company, its shareholders and all relevant stakeholders,” he said.
The transaction was examined by regulators after parts of the investment industry, including a proxy advisory firm, raised questions about the neutrality of PNB Housing’s board of directors.