Punjab National Bank will not take part in the capital raising plans of PNB Housing Finance (PNBHFL). However, PNBHFL said it will continue with its fundraise plans.
In a regulatory filing the company said, “Punjab National Bank has communicated that it shall not be participating in the capital raise plans of the company. However, the company will continue to pursue the proposed capital raising plan through permitted modes.”
PNB’s decision not participating in the capital raising plan comes after the Reserve Bank of India did not give a green signal to the lender’s application to infuse quiet in PNBHFL.
PNBHFL plans to raise the capital of up to Rs 1,000 crore via permitted modes including qualified institutional placement (QIP).
Last August, the Board of PNB Housing Finance approved raising Rs 1,800 crore of equity capital through preferential issue or rights issue.
In January 2021, the PNBHFL Board had approved the addition of the QIP mode in the capital-raise plan, along with the to rights and preferential issue.