PNB Housing seeks to withdraw appeal from securities tribunal

PNB Housing Finance filed an application on October 19 before Securities Appellate Tribunal (SAT) to withdraw the appeal against SEBI, the mortgage lender said in an exchange release.

On October 14, the company decided to not proceed with the preferential issue and to terminate share subscription agreements with Carlyle Group to raise Rs 4,000 crore.

SEBI, on June 18, in a letter had raised concerns around the then proposed fundraise. PNB Housing consequently had filed an appeal before the SAT against the letter.

PNB Housing Finance said the appeal has been rendered infructuous and the shareholder approval for the preferential issue has been rendered incapable of being received.

The appeal filed by SEBI before the Supreme Court was listed for hearing on October 20. In view of the recent developments, SC dismissed the appeal filed by SEBI stating that the appeal has become infructuous.

On October 14, PNB Housing Finance in an exchange release had informed that the company has terminated Rs 4000 crore fund raising deal with a Carlyle-led group of investors citing pending legal issues and delay in regulatory approvals.

Pluto Investments, an Carlyle affiliate entity, will be initiating the process to withdraw an open offer made by them, it said in the release.

"There continues to be no visibility or certainty as to the timeline for judicial determination of the legal issues...in addition, regulatory approvals required for the Preferential Issue are pending and it is unclear whether such approvals will be forthcoming while the legal proceedings are ongoing," PNB Housing said.