Poonawalla Fincorp to sell hsg arm to PE

Pune: The city-based listed financial services firm Poonawalla Fincorp has announced that it will sell its housing finance division, Poonawalla Housing Finance Limited (PHFL), to the American private equity firm TPG for Rs 3900 crores, subject to regulatory clearances, with the Adar Poonawalla-led firm 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 stake sale. 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. “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 said. Poonawalla Fincorp added that its long-term vision includes expanding tech-led growth, as well as continuing to reduce cost of borrowing and reduce operating expenses by consolidating its branches and other operations.