Alternative investment firms General Atlantic and Värde Partners have decided to buy a 13.1% stake in PNB Housing Finance Ltd for Rs 1,851.6 crore.
PNB Housing’s parent, state-run Punjab National Bank, said in a stock-exchange filing on Friday that the two US-based firms will invest Rs 925.80 each.
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After the transaction, PNB will continue to hold a strategic stake of 19.78 percent in PNB Housing.
The transactions are subject to conditions, including receipt of applicable regulatory approvals.
General Atlantic and Värde are buying PNB Housing shares at Rs 850 apiece. Shares of PNB Housing opened at Rs 834.4 apiece on Friday and touched a high of Rs 849.5 on the BSE.
As per media reports earlier, General Atlantic Partners (GA) and Varde Partners were the frontrunners for picking up stake in PNB Housing from PNB since February 2019 after PNB revived its plans to cash out of the venture in December after the initial plan of a 66 per cent sale by it and private equity investor Carlyle was dropped in the wake of liquidity pressure following default by Infrastructure Leasing & Financial Services (IL&FS) in September-October.
Meanwhile, five state-owned banks, including PNB, Bank of BarodaNSE -1.11 % and Union Bank, Thursday received shareholders’ approval for capital infusion to the tune of Rs 21,428 crore in lieu of preferential allotment of shares to the government.