Poonawalla Fincorp Limited has released its Q2 update, showcasing significant growth in its Assets Under Management (AUM). The company's performance highlights its strong position in the financial services sector.

Key Highlights

Strong AUM Growth

Poonawalla Fincorp has demonstrated impressive growth in its AUM, which reached approximately ₹47,625.00 crore. This represents a substantial year-on-year increase of 67.70% and a quarter-on-quarter growth of 15.40%. Such robust growth indicates the company's expanding market presence and successful business strategies.

Solid Liquidity Position

The company maintains a strong liquidity position of about ₹6,200.00 crore. This ample liquidity provides Poonawalla Fincorp with financial flexibility and the ability to capitalize on potential growth opportunities.

Risk Management and Business Approach

In its LODR filing, Poonawalla Fincorp emphasized its commitment to a 'risk first' approach and robust risk management systems. The company also highlighted its focus on business expansion aligned with building a long-term, sustainable, and profitable model.

Looking Ahead

As Poonawalla Fincorp continues to scale its operations, it remains committed to expanding its business while maintaining a focus on long-term sustainability and profitability. The company's diversified asset base and strong growth trajectory position it well in the competitive financial services landscape.

It's important to note that the provided financial information is provisional and subject to limited review by the company's statutory auditors.

Poonawalla Fincorp Limited, a prominent player in the financial services sector, has successfully completed a significant capital raise through a preferential share allotment to its promoter entity. The company's board of directors approved the issuance of 3.31 crore equity shares, bolstering its financial position and signaling strong promoter confidence in the company's future prospects.

Key Highlights of the Share Allotment

• Allotment Details: Poonawalla Fincorp has allotted 3,31,48,102 equity shares to Rising Sun Holdings Private Limited, a promoter entity.
• Issue Price: The shares were issued at Rs 452.51 per share, representing a substantial premium to the face value.
• Total Fundraise: The preferential issue has raised Rs 1,499.98 crore for the company.
• Increase in Share Capital: The company's paid-up share capital has increased from Rs 155.84 crore to Rs 162.47 crore.
• Expansion of Equity Base: Total equity shares have risen from 77.92 crore to 81.24 crore shares.

Impact on Company Structure

The preferential allotment has resulted in a notable change in Poonawalla Fincorp's capital structure:

Note: All figures in the table are in crore

Regulatory Compliance and Approvals

Poonawalla Fincorp has ensured full compliance with regulatory requirements for this preferential issue:

• The company received in-principle approval from both the National Stock Exchange of India Limited (NSE) and BSE Limited.
• The allotment adheres to the Securities and Exchange Board of India (SEBI) regulations, including the Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018.
• The process also complies with the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Terms of the New Shares

The newly allotted shares come with the following terms:

• Face Value: Rs 2 per equity share
• Premium: Rs 450.51 per share
• Rights: The new shares will carry the same rights as the existing equity shares of the company.

This strategic move by Poonawalla Fincorp not only strengthens its capital base but also demonstrates the promoter's commitment to the company's growth trajectory. The substantial premium on the share price reflects confidence in the company's valuation and future prospects.

As the financial services sector continues to evolve, Poonawalla Fincorp's enhanced capital position is likely to support its expansion plans and competitive standing in the market.