Poonawalla Fincorp Limited (PFL), a prominent non-banking finance company (NBFC) promoted by the Cyrus Poonawalla Group, has issued an official statement addressing recent anonymous allegations circulated via email and WhatsApp. The company has categorically denied these claims, describing them as "frivolous, malicious, unsubstantiated, and misleading."

Key Points of the Statement

• PFL has reported the matter to regulatory authorities and the Cyber Crime Cell.
• The company is requesting an investigation into the source and motives behind these communications.
• PFL urges stakeholders not to be influenced by unverified information.
• The company reaffirms its commitment to integrity, transparency, and high corporate governance standards.

Company's Response

Adar C. Poonawalla, Non-Executive Chairman of Poonawalla Fincorp Limited, stated in the official release, "These allegations are completely unsubstantiated and without merit." The company believes that the content of these communications appears to be a deliberate attempt to create confusion and harm PFL's reputation.

Legal and Regulatory Actions

PFL has taken swift action in response to these allegations:

1. Reported the matter to relevant regulatory authorities
2. Filed a complaint with the Cyber Crime Cell
3. Requested an investigation into the source and motives of the communications
4. Characterized the complaint as defamatory in nature

Company Overview

Poonawalla Fincorp Limited, formerly known as Magma Fincorp Limited, is a systemically important non-deposit taking NBFC registered with the Reserve Bank of India. The company has a strong presence in the financial services sector, offering a wide range of products including personal loans, business loans, and vehicle financing.

Stakeholder Advisory

PFL has urged the public, media, investors, lenders, and all stakeholders to rely only on official communications issued directly by the company through authorized channels. The company emphasizes the importance of verifying information before drawing any conclusions.

As this situation develops, Poonawalla Fincorp Limited maintains its focus on its core business operations and commitment to serving its customers in the consumer and MSME lending sectors. The company's proactive approach in addressing these allegations demonstrates its dedication to maintaining transparency and protecting its reputation in the financial services industry.

Poonawalla Fincorp Limited , a prominent player in the Indian financial services sector, has announced a significant corporate action that impacts its equity structure. The company's Nomination and Remuneration Committee has approved the allotment of new equity shares under its Employee Stock Option Schemes (ESOS), demonstrating its commitment to employee ownership and long-term value creation.

Key Details of the Allotment

Impact on Share Capital

The allotment of these new shares has led to an increase in the company's issued, subscribed, and paid-up equity share capital. Here's how the numbers stack up:

This corporate action reflects Poonawalla Fincorp's strategy to align employee interests with those of the company and its shareholders. Employee stock options are often used as a tool to attract, retain, and motivate key talent, potentially leading to improved performance and shareholder value over time.

The company has duly informed the stock exchanges about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that all market participants have access to this material information simultaneously.

For investors and market analysts, this allotment, while relatively small in the context of Poonawalla Fincorp's overall equity base, signifies the company's ongoing commitment to its human capital and corporate governance practices. It's worth noting that such allotments under ESOS are part of a company's long-term compensation strategy and are typically implemented over time based on vesting schedules and performance criteria.

As the financial services sector continues to evolve rapidly, especially in the wake of technological advancements and changing consumer behaviors, retaining top talent becomes crucial. Poonawalla Fincorp's move to strengthen its ESOS could be seen as a strategic step in this direction.

Investors and stakeholders may want to monitor how this and future ESOS allotments impact the company's financial metrics, such as earnings per share and return on equity, in the coming quarters.