Poonawalla Fincorp Limited in its board meeting approved sale of its housing subsidiary Poonawalla Housing Finance Limited to TPG (Perseus SG Pte. Ltd., an entity affiliated with TPG Global, LLC) at a valuation of INR 3,900 Crores, subject to regulatory approvals.
The transaction will maximize the shareholders’ value in the long term as Poonawalla Fincorp focusses on building a Tech-Led and Digital-First financial services company, with leadership in consumer & MSME financing. Poonawalla Fincorp will continue to work towards achieving its stated Vision 2025 at a standalone level with focus on Growth, Asset Quality and Profitability, according to the statement.
Adar Poonawalla, Chairman, Poonawalla Fincorp, said: “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. Poonawalla Fincorp will continue to focus on its growth coming from Tech-Led businesses and a branch-lite model while Poonawalla Housing will follow its own differentiated path as a completely independent business. As a global leading investment firm, TPGs experience in building and supporting leading financial services companies will add greater value to Poonawalla Housing.”
Abhay Bhutada, Managing Director, Poonawalla Fincorp, said: “The transaction would further support our growth strategy, given the huge market opportunity and our demonstrated execution excellence. Our chosen segments of consumer and MSME will continue to have healthy growth and we are confident that we will further accelerate our growth story by bringing innovative customer-centric solutions. We remain committed towards achieving our stated Vision 2025, with our focus on product diversification, innovation and superior customer experience complemented by bestin-class technology and analytics.”
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