Correct Answer : TPG
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..
Source : Business Insider
