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TPG to acquire Adar Poonawalla-led group’s housing finance arm at ₹3,900 crore valuation

TPG to acquire Adar Poonawalla-led group’s housing finance arm at ₹3,900 crore valuation
Business2 min read
  • TPG also announced that it will infuse an additional equity of up to ₹1,000 crore in the housing finance company in the near term.
  • Poonawalla Housing Finance (PHFL) currently has over 153 branches spread across 20 states.
US-based private equity major TPG has agreed to acquire the housing finance arm of Adar Poonawalla-led Poonawalla Fincorp at ₹3,900 crore valuation. TPG also said it will infuse an additional equity of up to ₹1,000 crore in Poonawalla Housing Finance in the near term.

In its press release, TPG said the existing management team led by Manish Jaiswal will continue to carry out the operations.

Poonawalla Housing Finance (PHFL) currently has over 153 branches spread across 20 states. At the end of September quarter, the company had assets under management (AUM) worth ₹5,612 crore. It reported a profit after tax (PAT) of ₹33 crore in the September quarter, with a 33% year-on-year growth.

“As India’s leading affordable housing finance provider, PHFL is uniquely positioned to grow in the fast-expanding affordable housing sector, which we believe is one of the most resilient asset classes across interest rate cycles,” said Puneet Bhatia, co-managing partner of TPG Capital Asia.

Poonawalla Housing Finance joins TPG’s portfolio of financial services companies in Asia, which includes Kakao Bank, Singlife, Five Star Business Finance, and Du Xiaoman Financial.

“We have full confidence that it (PHFL) will continue to make a strong contribution to the affordable housing sector with our new partnership with TPG. As a global leading investment firm, TPG’s experience in building and supporting leading financial services companies will add greater value to PHFL,” said Adar Poonawalla, chairman of Poonawalla Group.

PHFL currently offers home loans starting at 9.55% per annum. It has disbursed over 50,000 loans till date and offers credit for home construction, extension, improvement and balance transfer.

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