State owned lender-Punjab National Bank (PNB) is selling its stake in its housing finance arm, PNB Housing Finance to global private equity company General Atlantic and Varde Partners, bank said in a exchange filing.
Both companies will be buying 1.09 crore shares each at a price of ₹850 a piece thus taking the aggregate value of the purchase at ₹1,851.60 crore.
After the completion of the deal PNB will be holding strategic share of 19.78% in the PNB Housing Financesrule and will remain its promoter. Till December 31, PNB held 32.79% stake in its housing finance arm.
General Atlantic Partner and Varde Partners were willing to buy stake in the housing finance firm since February this year after PNB decided to sell its stake in PNB Housing Finance in December after PNB’s earlier deal with Carlyle deal which couldn’t come to any final conclusion owing to default by Infrastructure Leasing & Financial Services (IL&FS) in September-October.
Following this shares of shares of PNB Housing Finance closed at ₹865.70, up by 4.36% while the share of PNB were up by 0.05% closing at ₹95.40 on BSE.