Poonawalla fin co sells housing arm to PE

PUNE: Poonawalla Fincorp has announced that it will sell its housing finance division, Poonawalla Housing Finance (PHFL), to the American private equity firm TPG for Rs 3,900 crore, subject to regulatory clearances. The Adar Poonawalla-led firm is looking to focus on tech-led MSME and consumer financing.

Poonawalla Fincorp had announced plans to “unlock the value” of its housing finance business earlier in the year through a partial or complete stakesale. The company, earlier known as Magma Fincorp and based in Kolkata, was taken over by Adar in 2021, and its name changed to Poonawalla Fincorp, with its corporate headquarters also moving to Pune.

“After an exhaustive strategic review of the proposals, the board decided that a 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 said.
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