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NEW DELHI: Punjab National Bank (PNB) will sell its stake in PNB Housing Finance to General Atlantic and Varde Partners for Rs 1,851.60 crore, the lender told exchanges on Friday.
Varde Partners and General Atlantic will buy 1.09 crore shares each.
The shares will be acquired at Rs 850 per share, valuing the purchase at Rs 925.80 crore each for the buyers.
After the transaction, PNB will continue to hold a strategic stake of 19.78 per cent in PNB Housing.
Shares of PNB traded 1.68 per cent up at Rs 96.95, whereas those of PNB Housing Finance traded 2.33 per cent up at Rs 848.80 on BSE around 9:25 am.
As per media reports earlier, General Atlantic Partners (GA) and Varde Partners were the frontrunners for picking up stake in PNB Housing from PNB since February 2019 after PNB revived its plans to cash out of the venture in December after the initial plan of a 66 per cent sale by it and private equity investor Carlyle was dropped in the wake of liquidity pressure following default by Infrastructure Leasing Financial Services (ILFS) in September-October.
Meanwhile, five state-owned banks, including PNB, Bank of Baroda and Union Bank, Thursday received shareholders' approval for capital infusion to the tune of Rs 21,428 crore in lieu of preferential allotment of shares to the government.
Punjab National Bank (PNB) in a regulatory filing said that an extraordinary general meeting of shareholders was held on March 28 for obtaining shareholders' approval to issue and allot 80,20,63,535 equity shares at a premium of Rs 71.66 per share amounting up to Rs 5,908 crore on preferential basis to the government.
