Poonawalla Fincorp sells housing finance division to TPG

Poonawalla Fincorp, the non-banking division of the Cyrus Poonawalla Group announced on Wednesday that it has sold its housing subsidiary Poonawalla Housing Finance to private equity giant TPG for a sum of Rs 3,900 crore. According to the announcement, Perseus SG is a worldwide subsidiary of TPG which is carrying out the transaction subject to regulatory approval.

The Pune-based company stated that the full sale of the housing unit will enable it to concentrate on maximising value creation through resource allocation optimization and increasing management focus on their respective business needs. It also added that the sale's proceeds will strengthen its growth capital. The company has set a goal to grow its loan book by 35–40% yearly over the next three years while simultaneously keeping net non-performing assets (NPAs) under 1% by concentrating on tech-led development.

Poonawalla Fincorp was acquired by Magma Fincorp for Rs 3,456 crore in February 2021 and is currently held by Rising Sun Holdings, a business that Adar Poonawalla owns and controls. It offers pre-owned car financing, personal loans, loans to professionals, company loans, SME loans, loans against property, supply chain finance, medical equipment, consumer loans, and affordable house loans. It has an AUM of Rs 18,560 crore and employs over 4,000 people. The assets under management of Poonawalla Housing Finance totalled Rs 5,612 crore as of July–September 2022–2023.

Next (ED seizes land parcels & accounts of builders in Hyderabad & Bengaluru)

Poonawalla Fincorp sells housing finance division to TPG

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