Carlyle Plans Up to $308 Million Block Deal to Exit PNB Housing Finance

Carlyle Initiates Stake Sale Through Block Deal

US-based private equity firm Carlyle Group has initiated a major move to fully exit its investment in PNB Housing Finance by launching a block deal worth up to $308 million. The transaction involves the sale of a 10.4 percent stake held through Quality Investment Holdings Plc, a Carlyle affiliate. According to people familiar with the matter, the deal has been launched at a floor price of Rs 960 per share, representing a 5 percent discount to the closing price of Rs 1,010.20 per share on April 30.

• Carlyle seeks to offload its entire stake in PNB Housing Finance via this block trade.

• The floor price of Rs 960/share is set at a moderate discount to the last traded price.

• Quality Investment Holdings Plc is the executing entity on Carlyle’s behalf.

• The transaction is expected to fetch up to $308 million (approx. ₹2,570 crore).

IIFL Capital Acts as Deal Advisor

The proposed stake sale is being facilitated by IIFL Capital, which has been appointed as the exclusive advisor to the block transaction. Sources privy to the development disclosed that Carlyle intends to execute the exit in one go, consolidating its divestment through a single large transaction. All parties involved—Carlyle, PNB Housing Finance, and IIFL Capital—did not issue any official comments as of the time of reporting.

• IIFL Capital is advising Carlyle on the exit strategy.

• The sale reflects Carlyle’s complete divestment plan from PNB Housing.

• All stakeholders have refrained from public comments regarding the transaction.

PNB Housing Finance’s Financial Performance

The decision to exit comes at a time when PNB Housing Finance is demonstrating a strong recovery in financial performance. For the March quarter of FY25, the housing finance company reported a 25 percent year-on-year jump in net profit, reaching Rs 550 crore, compared to Rs 439 crore in the same quarter last year. This robust earnings performance has likely made the timing attractive for Carlyle’s exit, enabling the firm to potentially capitalize on elevated valuations.

• Q4 FY25 net profit rose 25% YoY to Rs 550 crore.

• The company’s profit in the year-ago period stood at Rs 439 crore.

• Strong earnings momentum likely influenced Carlyle’s timing for the stake sale.

Share Price Performance and Market Sentiment

Shares of PNB Housing Finance have delivered notable gains of 15.71 percent over the last month, driven by improving profitability and investor optimism. Despite the discount in the block deal pricing, the stock remains buoyant, supported by the broader sector’s strength and PNB Housing’s quarterly growth. The sale by Carlyle is not expected to materially affect the underlying fundamentals of the company but may influence near-term stock sentiment due to supply-side dynamics.

• PNB Housing shares gained 15.71% over the past month.

• The firm continues to benefit from strong investor sentiment and robust financials.

• Carlyle’s exit could lead to temporary price pressure due to increased share supply.