Punjab National Bank (PNB) won’t take part in capital elevate plans of its housing finance subsidiary, PNB Housing Finance, however the firm will proceed to scout for elevating fairness from different sources, based on a regulatory submitting.
In August final yr, PNB Housing Finance Ltd had knowledgeable about its plan to lift tier I capital as much as Rs 1,800 crore by numerous modes together with QIP, preferential challenge of shares or a rights challenge.
“On this context, Punjab National Bank has communicated that it shall not be taking part within the capital elevate plans of the corporate. Nevertheless, the corporate will proceed to pursue the proposed capital elevating plan by permitted modes,” PNB Housing Finance mentioned in a regulatory submitting.
The housing financier wants the funds to reinforce its capital base in addition to to satisfy its basic company functions.
Earlier this month, PNB managing director and CEO S S Mallikarjuna Rao had mentioned the financial institution was assured of getting RBI’s nod for infusing capital into the subsidiary.
PNB Housing Finance Managing Director & CEO Hardayal Prasad in an analyst name in January had additionally expressed confidence that the RBI will approve the proposal.
As of December 31, 2020, Punjab National Bank held 32.65 per cent stake in PNB Housing. PNB –as a promoter– has to stay invested within the firm with a minimal requirement of 26 per cent.
International portfolio buyers Funding Alternatives V Pte. Ltd and Common Atlantic Singapore Fund Fii Pte Ltd held 9.92 per cent and 9.87 per cent stake respectively as of December 2020. The full public shareholding within the firm stands at 67.35 per cent.
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