US-based private equity major TPG Capital on Thursday (July 27) completed the acquisition of a 99.02 percent equity stake in Poonawalla Housing Finance Ltd (PHFL) for Rs 3,004 crore.
The investment is made through TPG Capital Asia, the firm’s Asia-focused private equity platform. In the near term, TPG will also infuse additional equity capital up to Rs 1,000 crore to support PHFL’s growth. The company is expected to undergo a rebranding exercise soon.
Following the stake sale, Poonawalla Housing Finance will cease to be a subsidiary of Poonawalla Fincorp.
Manish Jaiswal, managing director, and chief executive officer of PHFL, said the acquisition marks a significant milestone for the company, which reflects TPG's long-term vision to partner with us in building a distinguished affordable housing financing institution in the country.
PHFL is the latest addition to TPG Capital Asia’s existing portfolio of fast-growing financial services companies across Asia, including Five Star Business Finance, Du Xiaoman Financial, Kakao Bank, and Singlife.
Puneet Bhatia, co-managing partner of TPG Capital Asia, said this acquisition represents TPG’s first majority investment in the affordable housing finance sector in India. As a leading player, PHFL is uniquely positioned to tap into an under-penetrated market that is expected to grow at a much faster pace than the overall housing finance industry.
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