Poonawalla Fincorp share price surges 12% as promoter stake increases after ₹1,500 crore fund infusion

Shares of Poonawalla Fincorp Ltd. surged as much as 12% to a 52-week high on Thursday, September 18, after the company's promoters completed a fund infusion announced earlier, thereby increasing their stake.

The company announced that the promoter fund infusion of ₹1,500 crore, announced during the company's June quarter results on July 25, was completed on Wednesday.

Poonawalla Fincorp's board has approved the issuance of 3.31 crore shares to the promoter, Rising Sun Holdings Pvt. Ltd. The fund infusion was done at a price of ₹452.51 per share, which is a premium to Poonawalla's closing price on Wednesday.

The fund infusion and allotment has been done on a preferential basis and via private placement.

With this fund infusion, the promoter stake in the company goes up from 62.43% to 63.97%. Poonawalla Fincorp's Book Value Per Share (BVPS) also goes up by 13.4% to ₹119.6, from ₹105.4 earlier.

According to analysts, the company's Capital Adequacy Ratio (CAR) will also go up to 24.3% from 20.6% after the fund infusion.

For the June quarter, Poonawalla Fincorp reported a 53% growth in its Assets Under Management (AUM), which was higher than the management guidance of 35% to 40% growth.

Shares of Poonawalla Fincorp are trading 11% higher at ₹496.5. This is the biggest single-day gain that the stock has seen since December 2022. Over 1 crore shares have already changed hands in the first 30 minutes of the trading session.