General Atlantic Partners (GA) and Varde Partners have emerged the frontrunners to pick up a 22% stake in PNB Housing Finance from Punjab National Bank for around Rs 3,500 crore in one of the most closely fought auctions for a mortgage firm, said three people aware of the development.
PNB revived its plans to cash out of the venture in December after the initial plan of a 66% sale by it and private equity investor Carlyle was dropped in the wake of liquidity pressure following the default by Infrastructure Leasing & Financial Services (IL&FS) in September-October.
PNB has decided to stay invested with a 10.7% stake and choose two buyers instead of selling the entire block to one suitor. The move ensures that no open offer for an additional 26% of the company gets triggered following the share sale.
As principal shareholder, Punjab National Bank owns 32.79% stake.
