The board of PNB Housing Finance has approved a fund-raising of up to Rs 4,000 crore through a preferential allotment of equity shares and warrants. The issue price of Rs 390 per share implies a discount of 25 per cent to Monday’s (May 31) closing price of Rs 525.65 per share on the BSE. 

While Carlyle Group firm Pluto Investments has agreed to invest up to Rs 3,185 crore, Aditya Puri, through his family investment vehicle Salisbury Investments, will invest Rs 25 crore. The SSG Group and General Atlantic will also participate in the capital-raising, with contributions of Rs 400 crore and Rs 390 crore respectively, PNB Housing has said. 

Morgan Stanley expects PNB’s stake in PNB Housing Finance to fall from the current 32.2 to 20.3 per cent and Carlyle’s stake to increase to 50.4 from 32.2 per cent at present, following preferential allotment and warrant conversion. The open offer price would be Rs 403.22 per share, adds Morgan Stanley. 

The primary objective of the fund mop-up is to augment the capital adequacy, reduce the debt-equity ratio and fund growth objectives in the retail lending segment. After the transaction, PNB Housing’s capital adequacy is expected to increase to over 28 from 18.7 per cent. Mr Puri is also likely to be nominated to PNB Housing’s board as a Carlyle nominee director.

PNB Housing Finance share price opened 20 per cent higher today from Monday's close and remain locked in upper circuit limit of Rs 630.20 on the BSE throughout the day.