Private Equity Power Play: Carlyle’s $308 Million Stake Sale Sets the Street Abuzz

Global private equity major Carlyle Group is to sell its entire remaining 10.44% stake in PNB Housing Finance through a large block deal worth around ₹2,604 crore or about $308 million. The deal, done through Carlyle's affiliate Quality Investment Holdings, will involve 27.1 million shares being sold at a floor price of ₹960 per share-a 5% discount on PNB Housing's closing price of ₹1,010.20 on April 30. IIFL Capital is the sole bookrunner and placement agent for this sale in the secondary market.

 

The move by Carlyle is the end of a decade-long investment in PNB Housing, which had started in 2015 by acquiring a 49% stake for ₹1,600 crore. Carlyle has gradually trimmed its holding over the years and has earned an estimated 367% return. The company offloaded 12.8% in July 2024 and 9.43% in November 2024, betting on the housing finance company's strong stock performance-shares have risen 127% in the last two years and 516% in five years.

 

PNB Housing Finance, a major subsidiary of Punjab National Bank, continues to be a major player in India's housing and construction finance space, posting a 25% surge in March quarter profit to ₹550 crore.

 

Source: Economic Times, Moneycontrol, CNBC-TV18