SAT allows shareholder voting on PNB Housing’s preferential issue

In a relief for PNB Housing Finance, the Securities Appellate Tribunal (SAT) has allowed voting by its shareholders on the proposed preferential issue worth Rs 4,000 crore to entities led by The Carlyle Group Inc.

The extra-ordinary general meeting (EGM) of the company is scheduled for Tuesday.

However, the tribunal has said that the results would not be declared and would be kept in a sealed cover.

The company would issue specific directions in this regard to the NSDL, which is the in-charge of the electronic voting, not to reveal the results and keep the same in a sealed cover till further orders of this tribunal, it said.

“Considering the aforesaid that no factual dispute exists and only an interpretation of the provisions of the ICDR Regulations and Companies Act read with Articles of Association is required to be considered, we direct the respondent to file a reply on or before June 26, 2021. Rejoinder, if any, may be filed by July 4, 2021. The matter would be taken for admission and for final disposal on July 5, 2021 as the first case in the cause list after the admission cases,” SAT said in its order.

Earlier in the day, PNB Housing Finance had said that it has filed an appeal before the SAT against the SEBI directive to halt the company’s proposed preferential issue.

In a letter date June 18, the Securities and Exchange Board of India (SEBI) directed PNB Housing Finance to stall the proposed preferential issue of shares to entities led by The Carlyle Group Inc.

The capital market regulator had asked PNB Housing to undertake the valuation of shares from an independent valuer before moving ahead with the issue.

“The current resolution bearing item No. 1 (Issue of Securities of the company and matters related therewith) of EGM notice dated May 31, 2021, is ultra-vires of AOA (articles of association) and shall not be acted upon until the company undertakes the valuation of shares as prescribed under 19(2) of AOA, for purpose of preferential allotment, from an independent registered valuer as per the provisions of applicable laws,” SEBI had said in its letter.