Housing subsidiary will be sold by Poonawalla Fincorp to TPG Group for Rs 3,900 crore

A non-banking lender named Poonawalla Fincorp revealed that it would pay TPG Group Rs 3,900 crore to acquire Poonawalla Housing Finance Limited's housing unit. On 14 December,2022, the company's board of directors approved the sale of its housing division.

"One of the goals in the company's Vision 2025 declaration was the value unlocking of the housing financing business. Accordingly, the procedure was initiated by the company by looking at portion dilution and price discovery "Poonawalla Fincorp stated.

According to Poonawalla Fincorp Chairman Adar Poonawalla, the corporation 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 participant 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 organisation "he added.

The deal, according to Poonawalla Fincorp's Managing Director Abhay Bhutada, will help the business' expansion strategy even more. With our focus on product variety, innovation, and outstanding customer experience, together with best-in-class technology and analytics, we are committed to attaining our stated Vision 2025, he said. Poonawalla Housing Finance is a housing finance company licenced by the RBI and a fully owned subsidiary of Poonawalla Fincorp. The housing subsidiary's assets under management (AUM) as of September 2022 were Rs 5,612 crore. In the second quarter, the subsidiary's PAT (profit after tax), which was Rs 33 crore, jumped by 75% compared to the same period last year. Poonawalla Fincorp had previously stated that it planned to obtain growth capital for its housing business in May 2022.

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