PNB Housing Finance shares further tumble 5 pc

Shares of PNB Housing Finance further fell by 5 per cent to its lowest trading permissible limit for the day on Tuesday amid concerns over its proposed deal with private equity firm Carlyle and others.

The stock declined 4.99 per cent to Rs 738.05 -- its lower circuit -- on the BSE.

At the NSE, it dipped 5 per cent to Rs 736.25 -- its lowest trading permissible limit for the day.

In the previous trading session also, it had fallen by 5 per cent.

Reserve Bank of India as well as Sebi will look into various regulatory issues related to the proposed Rs 4,000 crore-investment by US-based private equity firm Carlyle and others in PNB Housing Finance, sources said on Monday.

Last month, the board of PNB Housing Finance cleared a proposal to raise up to Rs 4,000 crore by issuing preference shares and convertible warrants to Carlyle Group firms and other entities.

According to the sources, concerns of minority shareholders, corporate governance and other regulatory aspects would be looked into by the RBI and Securities and Exchange Board of India (Sebi).

Earlier this year, RBI had shot down a proposal of Punjab National Bank (PNB) to infuse capital into its subsidiary PNB Housing Finance through a rights issue on concerns of the lender's financial health.

Currently, PNB as a promoter holds 32.64 per cent stake in PNB Housing Finance.

PNB Housing Finance's Extraordinary General Meeting (EGM) is scheduled to be held on June 22, to seek shareholders' approval for the preferential allotment of shares on a private placement basis to Carlyle and other entities, besides other proposals.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)