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Poonawalla Housing Finance readies for Rs.1,000-Cr pref equity raise

Business Line  

Poonawalla Housing Finance is set to roll out an INR 1,000 crore preferential issue. Poonawalla Housing (erstwhile Magma Housing Finance) is a subsidiary of Poonawalla Fincorp. The Poonawalla group has been preparing for its maiden equity raise since it took over Magma Fincorp in February 2021. The issuance might translate to a 15-20% stake offered to the investors. The company has appointed Ashok Wadhwa-led Ambit Capital as the investment banker for the issue. Poonawalla Housing's net worth and assets under management stood at INR 1,114 crore and INR 5,282 crore, respectively, as on June 30, 2022. Affordable housing accounts for 30% of its total loans. At 15-20 % equity dilution, the company's valuations work out INR 5,000–6,600 crore.