The Carlyle Group, a U.S.-based private equity firm, has divested its entire 10.44% stake in India’s PNB Housing Finance through a series of block deals, according to reports. The sale was made via Carlyle’s affiliate, Quality Investment Holdings, which had been the second-largest shareholder in the non-banking finance company. The deal involved approximately 17.3 million shares of PNB Housing, accounting for roughly 60% of the total block deal, which was launched at a floor price of 960 rupees per share.
In early trading, shares were sold at 1,000.20 rupees each, which represented a small discount of nearly 1% compared to the previous day’s closing price. This move marks the completion of Carlyle’s exit from its stake in PNB Housing Finance, although the exact identities of the buyers and further deal details have not been disclosed. Stock exchange data confirmed the sale, but neither Carlyle nor PNB Housing Finance responded to requests for comment on the transaction.
Following the block deal, PNB Housing Finance’s stock saw a notable increase, rising by 6% on the following trading day, reflecting positive market sentiment despite the large sale. The sale comes amid a period of strategic reshuffling in the Indian finance sector, as companies like PNB Housing continue to evolve in the face of changing market conditions.
For Carlyle, the decision to sell its stake in PNB Housing Finance reflects a broader trend of private equity firms reshaping their portfolios in emerging markets. The firm has been actively investing in and exiting a variety of assets globally, seeking to maximize returns for its investors. The block trade of shares in PNB Housing Finance is part of Carlyle’s broader exit strategy, with the firm leveraging such deals to generate liquidity while capitalizing on favorable market conditions.
As PNB Housing Finance looks ahead, the shift in shareholder structure may bring new opportunities for the company to grow and expand its business operations. The recent surge in its stock price indicates that investor confidence remains high, despite the significant share sale by a major stakeholder.
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