MUMBAI: Carlyle Group, a US-based private equity firm, is planning to divest its remaining stake in PNB Housing Finance through a block trade valued at $308 million (₹2,604 crore) set for Friday, as outlined in a term sheet from IIFL Capital.
The sale will be conducted through Quality Investment Holdings, a Carlyle affiliate, which is putting up its full holding of 27.1 million shares, constituting a 10.44% stake in the mortgage company.
The established floor price for this transaction is ₹960 per share, reflecting a 5% discount to PNB Housing’s April 30 closing price of ₹1,010.20 on the National Stock Exchange. This transaction is entirely secondary, managed by IIFL Capital Services as the exclusive bookrunner and placement agent.
Carlyle initially acquired a 49% stake in PNB Housing in 2015 for ₹1,600 crore, but this was reduced to approximately 33% following the lender’s IPO in October 2016.
As of June 30, 2024, Carlyle held a 32.68% stake in
PNB Housing Finance. The firm has been gradually reducing its stake—selling 12.8% in July 2024 via open market transactions for ₹2,578 crore, and another 9.43% in November for ₹2,300 crore, bringing its stake down to the current 10.44%.
In rupee terms, Carlyle’s investment in PNB Housing has yielded approximately 367% returns over a decade.
In May 2021, PNB Housing’s board greenlit a capital raise of ₹4,000 crore, led by Carlyle, which committed up to ₹3,185 crore via preferential allotment at ₹390 per share. However, the plan faced regulatory challenges when Sebi paused the transaction, citing the necessity for a new valuation in line with the company’s Articles of Association.
PNB Housing appealed the Sebi order in the Securities Appellate Tribunal (SAT), but later retracted the appeal and canceled the capital raise in September 2021.
Shares of PNB Housing have performed exceptionally well, rising 127% over the last two years and a remarkable 516% over the last five years. For comparison, the Nifty gained 35% and 147%, respectively, during the same time frames.
PNB Housing Finance is a significant subsidiary of Punjab National Bank (PNB), which held a 28.10% stake in the company as of March 31, 2025, primarily engaged in providing housing and construction finance to both individual and corporate clients.
