PNB Housing Finance on Sept 2, said that regulatory body Sebi has approached the apex court of India against the Securities Appellate Tribunal’s order in the matter related to the company’s Rs 4,000 crore equity capital raise plan.
“It has been brought to our notice that SEBI has filed an appeal to the Supreme Court of India against the order of SAT,” PNB Housing Finance said in a regulatory filing.
On 9th August, the two-member bench of the Securities Appellate Tribunal (SAT) gave differing opinions on the matter.
In the order, Justice MT Joshi held that SEBI had to notify as EGM vote cannot go ahead unless the valuation report is also obtained as per the Articles of Association and placed before the general body of shareholders.
However, Justice Tarun Agarwala kept a different view. He held that SBI should not have halted the EGM since the PNB board had approved the issuance of shares as per ICDR and shareholders should have continued with voting.
SAT directed that its interim order of June 21, 2021, should be followed until further order, constraining PNB Housing Finance from disclosing the voting results by the shareholders on the fundraising plan.
The voting was part of a special resolution to seek shareholders’ approval for the Rs 4,000 crore equity raise plan of PNB Housing by allotting preference shares and warrants to a handful of investors led by US-based private equity player Carlyle Group, said PTI.
The house financing company is examining the case filed by SEBI, it said.
On May 31, the company had announced the plan to raise capital.
However, it was soon obstructed by the proxy advisory firm, and it red-flagged the preference issue, stating the decision is against the promoter and the minority shareholders’ interest.
Soon, SEBI intervened in the matter and asked the company to halt the decision until a valuation of its shares is done by an independent registered valuer.
PNB Housing Finance set the preference issue price at Rs 390 apiece, much lower than the value of the share running at that time.
However, the company excused that it followed Sebi regulations while fixing the issue price.
On Thursday, PNB Housing Finance stock closed at Rs 656.50 apiece on NSE, down 1.40% from the previous close. Today, it opened at Rs 653, Rs 3.50 down a piece from the previous day close. In the early trading hours, it is trading at Rs 649.