Poonawalla Fincorp (formerly Magma Fincorp) on Wednesday announced the sale of its housing subsidiary Poonawalla Housing Finance to Perseus SG Pte Ltd (Perseus), an entity affiliated to TPG Global LLC, at a valuation of Rs 3,900 crore. Perseus will acquire the entire stake of Poonawalla Fincorp in Poonawalla Housing Finance after the completion of the transaction.

The deal will be subject to the receipt of necessary approvals from shareholders of Poonawalla Fincorp, approvals from the Reserve Bank of India, lenders and the completion of customary conditions.

The deal is expected to be completed by June 30. Poonawalla Fincorp said in a late evening regulatory filing that the transaction will maximise shareholders’ value in the long term as it focuses on building a tech-led and digital-first financial services company, with leadership in consumer & MSME financing.

The company added that it continues to work towards achieving the stated ‘Vision 2025’ at a standalone level with a focus on growth, asset quality and profitability.

The subsidiary, which was earlier known as Magma Housing Finance, had revenues of Rs 470.16 crore in the year ended March 31, 2022.

Poonawalla Fincorp added that the value unlocking of the housing finance subsidiary was one of the objectives of its vision statement. The company received a strong response to its proposals, including for a full stake buyout.