PNB, Carlyle Group to sell 51% stake in PNB Housing Finance: Report

PNB Housing Finance said on July 9 that Punjab National Bank (PNB) and the Carlyle Group are in the process of selling a minimum of 51 percent stake in the company, according to a report by Mint.

The stake sale will fetch state-owned PNB as much as Rs 6,500 crore, going by PNB Housing Finance’s market capitalisation of Rs 19,957 crore as on July 9. Carlyle Group had bought its stake in the mortgage lender in 2015.

“We hereby inform you regarding joint communication received today from Punjab National Bank and Quality Investment Holdings (Carlyle Group) regarding sale of minimum 51 percent stake in PNB Housing Finance Ltd to the potential acquirers. As on date, Punjab National Bank owns 32.79 percent and Quality Investment Holdings owns 32.36 percent of the paid-up equity share capital of the company,” PNB Housing Finance said in a statement to stock exchanges.

The stake sale comes at a time when PNB is still reeling from a Rs 14,356.84 crore fraud that involves illicit transactions carried out by diamantaire Nirav Modi and his uncle Mehul Choksi.

Modi is alleged to have fraudulently secured loan guarantees by conspiring with some of the lender’s employees.

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