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PNB Housing's rights issue to be completed by Dec
State-owned Punjab National Bank (PNB) said the Rs 2,500 crore-rights issue of its subsidiary PNB Housing Finance is expected to conclude earliest by December. Following the rights issue, the shareholding of PNB as a promoter of the company would come down from the current level of 32.57% to below 30%.
“RBI has given approval for infusion of Rs 500 crore in PNB Housing Finance. Post rights issue, the holding of the bank would come down below 30 per cent but would be higher than 26 per cent so that bank retains promoter status,” PNB Managing Director A K Goel said.
PNB will not be subscribing to the rights issue proportionate to its current holding in the company as the Reserve Bank of India (RBI) has allowed the bank to invest only up to Rs 500 crore in the rights issue. Consequently, the lender's stake in the mortgage firm will come down below 30 per cent from the current level.
