TGP Group to buy housing finance arm of Poonawalla Finance at Rs 3,900 crore

15 Dec 2022 , 09:55 AM

Poonawalla Fincorp (PFL) will sell its housing division, Poonawalla Housing Finance (PHFL), to Perseus SG, a unit of private equity firm TPG Global, for Rs 3,900 crore. Although, the transaction is pending for regulatory approval.

On Wednesday, the PFL board accepted the agreement.

One of the stated goals in the company’s Vision 2025 statement was to unlock the value of the housing financing business. In keeping with that, PFL looked at partial dilution and price discovery as the process’s initial steps. 

The business claimed to have considered a number of bids, including those for a complete stake purchase. The board determined that a total stake sale would be in the best interests of all stakeholders after conducting a thorough investigation. The disinvestment of all 24.98 crore equity shares of the home finance company to Perseus SG for Rs 152.84 per equity share was approved by the board.

According to a BSE filing by PFL, this implies a total equity value of Rs 3,900 crore. PFL shares closed the day 0.41% lower on the BSE at Rs 302.1 per share.

By the end of September 2022, PHFL’s assets under management had increased by 31% year over year (YoY) to Rs 5,612 crore. The company aims to grow its AUM by 35-40% over the next three years.