India`s Poonawalla Fincorp to sell housing unit to TPG for $473 million
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Poonawalla Fincorp said on Wednesday it would sell its housing finance unit to an affiliate of U.S. private equity firm TPG Global for 39 billion rupees ($473 million), as the Indian non-bank lender switches focus to technology-led growth.
The sale comes after at least five other bidders, including Indian investment firm ChrysCapital, expressed interest in the unit, local media has reported.
"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," Poonawalla Fincorp said in an exchange filing.
The company will sell its entire stake in Poonawalla Housing Finance at 152.84 rupees per share.
Poonawalla Fincorp also said it aims to grow its assets under management by 35-40% over the next three years.
Shares of Poonawalla Fincorp have declined over 3% since local media last month reported the possible sale. The stock, however, is up around 38% so far this year.
A firm controlled by Indian billionaire Adar Poonawalla in 2021 bought a majority stake in the firm, formerly known as Magma Fincorp, for about $475 million.
