INSUBCONTINENT EXCLUSIVE:
US private equity investor The Carlyle Group and staterun Punjab National Bank have scrapped their planned stake sale in housing finance
unit PNB Housing Finance Ltd as bidders appear to be going back on their proposal following halving of valuation of the mortgage lender in
sell stake in the entity and the process for the same is on.
This transaction may become the first casualty in the deals segment after a
Rs 14,370 crore at present from Rs 21,000 crore in less than a month
The stock has hit a 52-week low of Rs 850 on the Bombay Stock Exchange
Promoters of Punjab National Bank and Carlyle, which together own about 66 per cent in the mortgage lender, were looking to sell their stake
As many as 20 bidders had put in non-binding bids, of which seven were shortlisted and were about to submit binding bids
companies have taken a battering due to panic in the system following rumours of a liquidity crisis
Stressed finances at ILFS has acted as a contagion and has changed the perception of the industry.
PNB Housing has a liquidity of Rs 4,800
crore and does not carry too many commercial papers (CPs) on its books
It is also a deposit taking housing finance company, which raised $200 million, or Rs 1,470 crore, through external commercial borrowings on
October 8.
This has enhanced its liquidity profile and asset liquidity management (ALM) position as the facility is for five years.
After
investments in non-core areas to strengthen its capital position.
PNB has been looking to sell its stakes in PNB Housing Finance, Icra,
Crisil and BSE to unlock capital in the midst of higher non-performing loans and growth challenges.
