Poonawalla Fincorp stock rises 2% on sale of housing arm to TPG

Shares of Poonawalla Fincorp were in focus today after the non-banking lender announced sale of its housing subsidiary Poonawalla Housing Finance to private equity major TPG for Rs 3,900 crore.  

Poonawalla Fincorp stock rose 1.95% to Rs 308 against the previous close of Rs 302.10 on BSE. The stock opened higher at Rs 307.50 against the previous close of Rs 302.10 on BSE. The shares have gained 41.76% in a year and risen 37.88% in 2022.   

Total 0.54 lakh shares of the firm changed hands amounting to a turnover of Rs 1.64 crore in the morning session. Market cap of the firm rose to Rs 23,083 crore on BSE. 

The company in its board meeting on Wednesday approved selling off its housing subsidiary. 

Also Read: Poonawalla Fincorp to sell housing subsidiary to TPG Group for Rs 3,900 crore

"The transaction will maximise the shareholders’ value in the long term as Poonawalla Fincorp aims to build a tech-Led and Digital-First financial services company, with leadership in consumer & MSME financing," said Poonawalla Fincorp in a stock exchange filing. 

“The value unlocking of the housing finance subsidiary was one of the stated objectives in the company’s Vision 2025 statement. In line with that, company started the process by looking at part dilution and price discovery," said Poonawalla Fincorp. 

Poonawalla Housing Finance, being an RBI-registered housing finance company, is Poonawalla Fincorp's 100% subsidiary. The housing subsidiary had assets under management (AUM) of Rs 5,612 crore as of September 2022. During the second quarter, the subsidiary’s PAT (profit after tax) grew by 75 percent year-on-year to Rs 33 crore.