Poonawalla Fincorp to sell housing unit to TPG arm for Rs 3,900 cr


has decided to sell its subsidiary Poonawalla Housing Finance to Perseus SG Pte Ltd, an entity affiliated with TPG Global LLC, for Rs 3,900 crore.

The decision was in line with the company’s plan to focus on consumer & MSME financing. The Poonawalla Fincorp board approved the deal Wednesday.

Poonawalla Housing Finance is a lender in the affordable segment of the housing finance market with 128 branches across India. It had its assets under management at Rs 5612 crore at the end of September. It made a net profit of Rs 33 crore in the second quarter of FY23.

“The value unlocking of the housing finance subsidiary was one of the stated objectives in the company’s Vision 2025 statement,” the company said after announcing the development.

“Financial services business is of strategic importance to us, and we stay fully committed towards creating value for all our stakeholders and building Poonawalla Fincorp into a new age financial services player of choice,” chairman Adar Poonawalla was quoted as saying in a statement issued by the company.

As a global leading investment firm, TPG’s experience in building and supporting leading financial services companies will add greater value to Poonawalla Housing,” he added.

Poonawalla Fincorp is said to have received good response with proposals including those for a full stake buyout. Post an exhaustive strategic review of the proposals, the board decided that complete stake sale would be in the best interest of both the entities and all stakeholders considering the different customer segments, geographies, and distribution model.

The company now plans to focus on its growth coming from tech-led businesses and a branch-lite model.

“The digitization further complements innovation in products, customer experience and engagement. It will continue to build a strong retail franchise in consumer and MSME financing,” the company said.

The company aspires to achieve AUM growth of 35-40% year-on-year over the next three years. The company will continue to drive consolidation of its

branches, manpower and create an efficient structure in line with its growth strategy.



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