Poonawalla Fincorp Sells Its Housing Finance Division To TPG For Rs. 3,900 Crores
Poonawalla Fincorp, a non-banking lender, announced on Wednesday that it would pay TPG Group Rs 3,900 crore to purchase its housing arm Poonawalla Housing Finance Limited. The company’s board of directors approved the sale of its housing subsidiary on Wednesday.
Poonawalla Fincorp stated in a stock exchange filing that the deal would increase shareholders’ value over the long term as it aims to create a tech-Led and Digital-First financial services company with leadership in consumer and MSME financing.
“One of the goals in the company’s Vision 2025 statement was the value unlocking of the housing finance subsidiary. Accordingly, the company initiated the process by looking at part dilution and price discovery, “Poonawalla Fincorp stated.
Also Read,
Job Openings In FinTech, Check Out Opportunities At: ZestMoney, Instamojo, Kissht
According to Poonawalla Fincorp Chairman Adar Poonawalla, the company places a high strategic value on its financial services division. “We continue to be fully committed to generating value for all of our stakeholders and developing Poonawalla Fincorp into a leading player in the new generation of financial services. Poonawalla Housing will benefit more from TPG’s expertise in developing and sustaining top financial services companies as a leading global investment firm, “said he.
According to Poonawalla Fincorp’s Managing Director Abhay Bhutada, the deal will help the business’ growth strategy even more. With our focus on product diversification, innovation, superior customer experience, and best-in-class technology and analytics, we remain committed to achieving our stated Vision 2025, he said.
Poonawalla Housing Finance is a wholly owned subsidiary of Poonawalla Fincorp and is a housing finance company registered with the RBI. As of September 2022, the housing subsidiary’s assets under management (AUM) totaled Rs 5,612 crore. The subsidiary’s PAT (profit after tax), which was Rs 33 crore during the second quarter, increased by 75% year over year.
Poonawalla Fincorp had previously stated that it planned to raise growth capital for its housing business in May 2022.
Also Read,
