Poonawalla Fincorp raises ₹2,500 crore via QIP to fuel lending growth
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Poonawalla Fincorp , a Cyrus Poonawalla Group-promoted NBFC focused on consumer and MSME lending, has successfully raised ₹2,500 crore through a qualified institutions placement (QIP). The issue garnered strong participation from institutional investors as well as long-term funds, it said in a release.
The company issued 6.74 crore equity shares with a face value of ₹2 each at an issue price of ₹370.75 per share, a 5% discount to the floor price of ₹390.26. On Monday, Poonawalla Fincorp shares ended 2% higher at ₹408.30 on the BSE, with a market capitalisation of ₹33,187.34 crore.
The QIP, which opened on April 9 and closed on April 13, saw participation from a diversified investor base, including domestic mutual funds, insurance companies, and foreign institutional investors, underscoring continued confidence in the company’s growth strategy, the release noted.
As per the company, the capital raised will be deployed to accelerate lending growth, expand operations, and further diversify the asset portfolio, as it strengthens its presence in the retail and MSME financing space.
Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, and J.P. Morgan India Private Limited acted as the book-running lead managers to the issue. Legal counsel to the company was provided by Shardul Amarchand Mangaldas & Co., while Cyril Amarchand Mangaldas and Sidley Austin Singapore Pte. Ltd. advised the lead managers.
According to a recent report by Motilal Oswal Financial Services, Poonawalla Fincorp has largely completed its balance sheet clean-up and is now transitioning into a more structurally stable growth phase, supported by a rebuilt operating platform.
The brokerage highlighted that the company has re-architected its business model with deeper AI-led integration across key functions such as underwriting, fraud detection, risk analytics, collections, and targeted marketing. This transformation is enabling sharper credit selection, faster turnaround times, and more efficient customer acquisition.
“As a result, PFL is witnessing strong traction across its newly launched product segments, with disbursement momentum accelerating across all its verticals. New businesses already contribute 11% of AUM and 20% of quarterly disbursements, highlighting rising customer acceptance, improving distribution throughput, and increasing diversification.” it said.
The brokerage also noted that the ₹1,500 crore equity infusion by the promoter group in early FY26 underscores strong promoter commitment and provides additional balance sheet comfort, reinforcing confidence in the company’s long-term growth trajectory. It added that the proposed ₹5,500 crore capital raise should be viewed as a proactive growth initiative rather than a necessity, aimed at supporting an ambitious 3540% AUM CAGR over the medium term while accelerating expansion in secured lending segments such as gold loans, commercial vehicle finance, and MSME lending.