By Aditya Raghunath
Investing.com — On June 7, Investing.com had reported how private equity player Carlyle Group (NASDAQ:) along with a consortium of investors will infuse Rs 4,000 crore into PNB Housing Finance Ltd (NS:) via a preferential allotment. The stock had rallied over 100% in six trading sessions.
On June 8, Stakeholders Empowerment Services (SES), an institutional investment advisory firm, in a report, said that the whole process was against minority/retail shareholders of the company and was ultra vires of law.
It also said that this deal would cause a loss of Rs 2,000 crore to Punjab National Bank (NS:), one of the country’s largest public sector banks. It said that PNB Housing could have raised the same amount via a rights issue, and PNB could have renounced its rights entitlement to Carlyle at a market-related price.
In an interview with CNBC TV18, JN Gupta, who runs SES said, “85% percent of the shareholders have decided either they want to take preferential or don’t want to take…My argument is if 85% is a party to it, why not make 15% more party to it, and PNB can renounce their right or not, let them do whatever they want. But at least it will be in a transparent manner. The issue is very clear, you have forgotten about the retail shareholders.”