The decision was in line with the company’s plan to focus on the consumer and the consumer. msme financing, The Poonawalla Fincorp board approved the deal on Wednesday.
Poonawalla Housing Finance is a leading lender in the affordable segment of the housing finance market with 128 branches across India. Its assets under management stood at Rs 5612 crore at the end of September. It posted a net profit of Rs 33 crore in the second quarter of FY23.
“Unlocking the value of the housing finance subsidiary was one of the objectives stated in the company’s Vision 2025 statement,” the company said after announcing the development. “The financial services business is of strategic importance to us, and we are fully committed to creating value for all our stakeholders and positioning Poonawalla Fincorp as the new-age financial services player to be preferred,” Chairman Adar Poonawalla said in a statement. I said company.
As a global leading investment firm, TPG’s experience in building and supporting leading financial services companies will add greater value to Poonawalla Housing,” he added.
Poonawalla Fincorp is said to have received a good response with offers including buying the entire stake. After a comprehensive strategic review of the proposals, the Board decided that the sale of entire stake would be in the best interest of both the entities and all stakeholders, considering the various customer segments, geographies and distribution models.
The company now plans to focus on technology-led businesses and its growth coming from a branch-lite model.
“Digitalization drives innovation in products, customer experience and engagement. It will continue to build a strong retail franchise in consumer and MSME financing,” the company said.
The company aspires to achieve an AUM growth of 35-40% year-on-year over the next three years. The company will continue its consolidation drive
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