Shares of Poonawalla Fincorp Ltd. will be in focus on Friday, April 10, after the company launched a qualified institutional placement (QIP) to raise funds, confirming a CNBC-TV18 newsbreak. According to sources, the issue size is pegged at ₹2,500 crore, with the company retaining the option to upsize the offering. The indicative issue price is set at ₹370.75 at the lower end, implying a potential equity dilution of up to 8.3% of the total outstanding equity capital at the base issue size. However, as per an exchange filing, the board has approved a floor price of ₹390.26 per equity share for the QIP, which is at a 7.7% discount to the current market price.
The proceeds from the fund raise will be utilised towards assets under management augmentation, including lending and financing activities, as well as for debt repayment and general corporate purposes. This strategic approach aims to strengthen the company's lending capabilities and improve its financial position through debt reduction and operational expansion. The company's assets under management stood at ₹60,325 crore as of March 31, while maintaining ample liquidity of around ₹7,550 crore at the end of the March quarter.
Shares of Poonawalla Fincorp ended 3.15% lower at ₹401.75 on Thursday, as reported by NDTV Profit, with the stock falling as much as 4.39% to ₹396.60 during intraday trading. The stock has declined 16.81% year-to-date and 14.05% in the last 12 months, reflecting broader market challenges and investor sentiment around the company's financial position and growth prospects. The QIP launch comes at a time when the stock has been under pressure in the current market environment.
The company's strong credit profile remains a key differentiator, with Poonawalla Fincorp maintaining a AAA credit rating, which is relatively rare in the NBFC sector. This rating, driven by promoter support and disciplined risk management, provides the company with access to low-cost funding. The board had earlier approved raising up to ₹5,500 crore through the QIP in January along with its third quarter results, demonstrating the company's strategic approach to capital raising for future growth initiatives.
