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Poonawalla Fincorp puts housing finance arm on the block: Sources

Poonawalla Fincorp puts housing finance arm on the block: Sources

Poonawalla Fincorp puts housing finance arm on the block: Sources
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By Moneycontrol News Nov 23, 2022 2:24:40 PM IST (Updated)

Sources suggest that the ask price for Poonawalla Housing Finance by the parent company is 3-times the net worth of the arm which was reported as Rs 1,100 crore in Sep-end 2022.

Adar Poonawalla’s Poonawalla Fincorp is in talks to sell its housing finance arm, Poonawalla Housing Finance, sources with direct knowledge of the matter told Moneycontrol.

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Sources suggest that the ask price for Poonawalla Housing Finance by the parent company is 3-times the net worth of the arm which was reported as Rs 1,100 crore in Sep-end 2022. Ambit investment bank is running the process to sell Poonawalla Housing Finance and is in talks with select suitors, mostly private equity funds.
Poonawalla Housing Finance’s MD & CEO Manish Jaiswal told Moneycontrol, “We had announced our intent for growth capital raise in May 22 and a merchant banker has been appointed to run this process.”
In its stock exchange intimation on May 12, 2022 the company had said, “The Board has accorded an in-principal approval to raise funds in Poonawalla Housing Finance Limited with raise not exceeding Rs 1,000 crore with stake dilution of less than 15% in one or more tranches by way of preferential issue during the Financial Year 2022- 23.” The company had also shared intent of a possible IPO of the company without alluding to any timelines.
As per the sources, in the absence of any breakthrough in minority stake sale, Poonawalla Fincorp is now exploring a complete sale of its housing arm. An expert said, “The company is in constant need of capital and needs a partner which can provide deep pocket.”
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