Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC, has announced its financial results for the quarter ended June 30, along with significant strategic moves to bolster its capital base and growth prospects.

Financial Performance

The company reported a profit after tax of Rs 62.60 crore for the quarter, compared to Rs 291.64 crore in the same period last year. Total income increased to Rs 1,314.01 crore from Rs 995.86 crore year-over-year, demonstrating strong revenue growth.

Strategic Capital Infusion

In a significant move, the Board of Directors approved raising funds amounting to approximately Rs 1,499.99 crore through a preferential allotment of equity shares to the promoter, Rising Sun Holdings Private Limited. This decision is subject to shareholders' approval and necessary regulatory clearances.

The company plans to issue 3.31 crore fully paid-up equity shares at Rs 452.51 per share. Post-allotment, the promoter's shareholding is expected to increase from 62.46% to 63.99%, reinforcing their commitment to the company's long-term growth strategy.

Expansion of Debt Issuance Limits

The Board also approved an enhancement in the limits for raising funds through Non-Convertible Debt Securities. The limit has been doubled from Rs 10,000 crore to Rs 20,000 crore, providing additional financial flexibility to support the company's growth plans.

Furthermore, Poonawalla Fincorp has approved increasing its borrowing limits from Rs 50,000 crore to Rs 75,000 crore, subject to shareholder approval.

Business Outlook

The significant increase in debt issuance and borrowing limits, coupled with the substantial capital infusion through preferential allotment, indicates Poonawalla Fincorp's ambitious growth plans. These strategic moves are likely aimed at supporting the company's expansion in various lending segments and strengthening its market position in the competitive NBFC landscape.

As the company continues to evolve and grow, these financial and strategic decisions are expected to play a crucial role in shaping its future trajectory and ability to capitalize on market opportunities.

Poonawalla Fincorp Limited has announced plans to discuss significant financial moves in its upcoming board meeting scheduled for July 25, 2025. The company's board of directors will consider two major proposals that could potentially reshape its capital structure and funding capabilities.

Equity Fundraising on the Table

One of the key items on the agenda is a proposal for raising funds through the issuance of equity shares on a preferential basis. This move, if approved, would be subject to shareholder approval and would need to comply with the provisions of the Companies Act, 2013, as well as relevant SEBI regulations and other applicable laws.

Potential Doubling of Debt Issuance Limit

Poonawalla Fincorp is also set to consider enhancing its limits for raising funds through the issuance of Non-Convertible Debt Securities on a private placement basis. The proposal aims to increase the limit for the Financial Year 2025-2026 from the current ₹10,000.00 crore to ₹20,000.00 crore, effectively doubling the company's debt-raising capacity.

Implications and Approvals

If approved, these proposals could significantly bolster Poonawalla Fincorp's financial flexibility and its ability to fund future growth initiatives. However, it's important to note that these are still proposals subject to board approval and, in the case of the equity issuance, subsequent shareholder approval.

Trading Window Closure

In line with regulatory requirements and the company's internal Code of Conduct for Prohibition of Insider Trading, Poonawalla Fincorp has announced that its trading window will remain closed until July 27, 2025. This measure is designed to prevent insider trading and ensure fair market practices during this period of potential material decisions.

The outcomes of these discussions will be closely watched by investors and market analysts, as they could have significant implications for Poonawalla Fincorp's financial strategy and future growth prospects in the dynamic financial services sector.