CARE has upgraded the rating of various long-term bank facilities/instruments of Poonawalla Fincorp Limited.
PFL was formerly known as Magma Fincorp Limited (MFL). CARE has upgrated the rating by two notches to ‘CARE AA+; Stable’ from ‘CARE AA- (under credit watch with developing implications)’ and reaffirmed the short-term rating at ‘CARE A1+’.
The revision in the ratings assigned to Poonawalla Fincorp Limited (PFL) factors in the strength derived from the new promoter i.e., Poonawalla Group acquiring 60% stake through Rising Sun Holdings Private Limited (RSHPL).
This was accompanied with a change in management control with Adar Poonawalla appointed as the Chairman of the Board, shared brand name and expectation of timely need based financial support from the Group.
Post the completion of this sizeable preferential issue, regulatory approvals & open offer, RSHPL holds 60% stake while the existing promoters’ stake reduced to 13.3% from 24.4% in PFL.
Following the preferential issue, RSHPL is classified as the promoter of PFL along with existing promoters. Further, PFL and the subsidiaries, namely Poonawalla Housing Finance Limited (PHFL) have been renamed and rebranded under the brand name ‘Poonawalla Fincorp Limited’, w.e.f. July 22, 2021, a release said.