PNB Housing Finance has reached the Securities Appellate Tribunal (SAT), filing an appeal against the letter by Sebi asking it not to go ahead with its Rs 4,000-crore capital raise plan led by Carlyle group. On June 18, Securities and Exchange Board of India (Sebi) had written a letter to the company asking it to ensure compliance before going ahead with the proposal.
The company had informed stock exchanges about the Sebi letter on June 19 through a regulatory filing. "Please note that company has filed an appeal before the Securities Appellate Tribunal against the letter issued by the Sebi on June 18, 2021," it said in a filing on Monday. The company's EGM is scheduled for June 22 to seek shareholders approval for the proposal among others.
The firm's capital raise plan through issuance of preference shares and warrants has come under the scanner, with concerns raised about hurting interest of minority shareholders as well as the issue price being fixed much lower than the prevailing market price of the stock.
PNB Housing Finance stock traded 5 per cent lower at Rs 702.40 a piece in early morning trade on BSE. The company has fixed the issue price for the proposed fund raise at Rs 390 a piece. Last week, it said the process followed by the company in determining the issue price for its proposed Rs 4,000 crore preference shares was "in line with the market practice" followed by listed companies. When asked if the EGM will take place on the scheduled date, the company expressed its inability to comment.