Newbreak confirmed | Poonawalla Fincorp launches ₹2,500 crore QIP

Confirming an earlier CNBC-TV18 report, Poonawalla Fincorp has launched a Qualified Institutional Placement (QIP) of equity shares to raise its capital reserves. The indicative issue size is set at ₹2,500 crore, with the company retaining an option to upsize the offering based on demand.

A board-appointed committee of directors approved the launch on April 9, adopting the preliminary placement document for the fundraising.

The floor price has been fixed at an indicative issue price of ₹370.75 at the lower end of the price band. At its base size, the placement could result in an equity dilution of up to 8.3% of the company’s total outstanding share capital.

Under SEBI regulations and per a special resolution passed via postal ballot earlier this year, the company may offer a discount of up to 5% on the floor price.

The proceeds are earmarked to augment Assets Under Management (AUM) by supporting lending and financing activities, debt repayment, and general corporate purposes.

Also read: Poonawalla Fincorp likely to launch ₹5,000-crore QIP: Sources

Shares of Poonawalla Fincorp ended at ₹403, down 2.84%, on the NSE.