India’s capital market regulator ordered Punjab National Bank Housing Finance Ltd. to halt its proposed fund-raising plan by a group of investors led by private equity firm Carlyle Group Inc.
The Securities and Exchange Board of India said PNB Housing’s plan to issue securities by way of preferential allotment on a private placement basis shouldn’t be carried out until it undertakes the valuation of shares from an independent registered valuer, according to a stock exchange filing on Saturday.
Punjab National Bank Housing Finance said it has acted in compliance with all relevant applicable laws and is evaluating further steps.
The independent valuer’s report “shall be considered by the company’s board while deciding on the preferential issue of shares and warrants,” the housing company said.
Last week, the Mint newspaper said SEBI was probing the investment plan after proxy advisory firm SES described the proposed deal as “unfair and abusive” for minority shareholders of PNB Housing, and that the mortgage lender could have raised the funds through a rights issue.