Carlyle to sell its 33% holding in PNB Housing Finance
Buyout firm Carlyle is looking to sell its entire stake in PNB Housing Finance in a deal that would yield a return that’s several times the money it invested three years ago. PNB Housing Finance, which listed in Mumbai in November 2016 after Rs 3,000-crore initial public offer, has seen its market value almost double since then. Carlyle had invested Rs 1,600 crore in February 2015 for a 49% stake in the then unlisted company.
It now owns a 33% stake, having recently sold about 5% in the open market. The company may mandate Morgan Stanley to lead the deal. The listed mortgage lender has a market capitalisation of Rs 18,994 crore.
Parent Punjab National Bank (PNB) has been looking to raise funds by selling stakes in noncore assets to shore up capital. PNB Housing Finance is the second-largest deposit taking housing finance company in India. Other investors include Birla Sunlife MF, Motilal Oswal MF, Wasatch, T.Rowe Price, Government of Singapore, Fidelity, Invesco, Reliance MF and Nomura Asset Management.