Promoter Rising Sun Holdings buys 0.5% stake in Poonawalla Fincorp for Rs 200 crore

Promoter Rising Sun Holdings Pvt Ltd has acquired a 0.5% stake in Poonawalla Fincorp for around Rs 200 crore through the open market on Wednesday.
Rising Sun Holdings, owned by billionaire Adar Poonawalla, bought 40,33,000 shares of the NBFC major at Rs 495.85 a share, bulk deals data on the National Stock Exchange showed.

As of December-end, Rising Sun Holdings held 62.07% stake in the company.

Through a separate deal, Magma Ventures Pvt Ltd sold 40,33,000 shares, representing 0.5% stake, for Rs 200 crore. As of December-end, Magma Ventures held a 1.5% stake in the company.

On Wednesday, multibagger stock Poonawalla Fincorp ended nearly 1% down on the NSE at Rs 478.

Market was abuzz with rumours that promoter has likely acquired stake in the company through the open market.

Magma Ventures was the erstwhile promoter of Poonawalla Fincorp, which was then known by the name Magma Fincorp. In 2021, Adar Poonawalla-led Rising Sun Holdings acquired a controlling stake in Magma Fincorp and renamed it as Poonawalla Fincorp. Under its new avatar, the company’s business saw a major revamp, which drove earnings as well as stock performance. In the last three years, the stock value has gone up by a staggering 981%.

Last week, the company reported robust earnings for the quarter ended December, with a 76% year-on-year growth in net profit, led by a 63% rise in net interest income.

“In our view, its quality focus, continued digital developments to optimize operations, strong balance sheet and long growth trajectory should see the stock re-rate further,” JM Financial said. It has a “buy” rating on the stock with a target price of Rs 620.

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