Poonawalla Fincorp Ltd on Wednesday said it has sold its subsidiary, Poonawalla Housing Finance Ltd, to Perseus SG Pte. Ltd, which is affiliated with TPG Global, for ₹3,900 crore.
“The transaction will maximize shareholder value in the long term, as Poonawalla Fincorp focusses on building a tech-led, digital-first financial services company, with leadership in consumer and micro, small and medium enterprise (MSME) financing," the Cyrus Poonawalla group-promoted non-bank lender said in a regulatory filing.
Poonawalla Fincorp operates in the affordable housing segment. As of 31 March, it had over 46,000 customers, and the average ticket size for loans was at ₹11 lakh.
The firm will work towards achieving its Vision 2025 at a standalone level, focussing on growth, asset quality and profitability, it said. Value-unlocking of the housing finance subsidiary was a stated objective and, in line with it, it was looking at a part dilution and price discovery, it added.
“The company received tremendous response with proposals including those for a full stake buyout. Post an exhaustive strategic review, the board decided a complete stake sale will be in best interest of all stakeholders, considering the different customer segments, geographies, and distribution model," the company said.
The deal will help focus on maximizing value creation by optimizing resource allocation and increasing management focus on respective business needs. “With the rapidly growing digital ecosystem, the firm sees huge growth opportunities in its current and proposed line of businesses. It will continue to build a strong retail franchise in consumer and MSME financing," it said.
The company has assets of ₹18,560 crore under management and employs over 4,000 people. Its financial services business include pre-owned car financing, personal loans, loan to professionals, business loans, and small and medium enterprise loans against property, supply chain financing, medical equipment, consumer loans and home loans.
“As a global leading investment firm, TPGs experience in building and supporting leading financial services companies will add greater value to Poonawalla Housing," Adar Poonawalla, chairman, Poonawalla Fincorp, said.