Kolkata: Punjab National BankNSE 0.89 % (PNB) has decided not to sell shares in its subsidiary PNB Housing FinanceNSE -10.55 % and maintain a minimum 26% shareholding as a promote ..
PNB’s holding in PNB Housing is set to fall to around 27.5% from the current 32.43% when the later issues fresh shares to raise about Rs 1500 crore. PNB will not subscribe to the issue.
“PNB has confirmed that its stated objective is to continue to hold a minimum 26% shareholding in the company and continue to be the promoter,” PNB Housing said in a statement.
The mortgage lender has in fact shrunk its equity raising plan by one-fourth from the proposed Rs 2000 crore so that PNB’s holding does not fall below the 26% level, PNB Housing Finance managing director Sanjay Gupta told ET.
The Carlyle Group and General Atlantic Singapore, among existing shareholders, will make fresh investments.
A minimum 26% holding is needed for nominating a chairman in the board. PNB’s chief executive SS Mallikarjuna Rao is now PNB Housing’s chairman.
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