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News for India > Business > Poonawalla Fincorp shares rise after fundraise move. Details here | Stock Market News
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Poonawalla Fincorp shares rise after fundraise move. Details here | Stock Market News

Last updated: July 21, 2025 11:38 am
7 months ago
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Contents
Strong Operational Momentum in Q1Stock Performance

Shares of Poonawalla Fincorp gained more than 3 percent in intra-day trade on Monday, July 21, following the company’s announcement that its Board of Directors will consider two major fundraising proposals during its upcoming board meeting scheduled for July 25, 2025. The move sparked positive investor sentiment, sending the stock to a high of ₹466.20 in early trade.

In a regulatory filing, the non-banking financial company (NBFC) said the board will evaluate a proposal for raising funds through the preferential issue of equity shares. This equity infusion, if approved, will be carried out in accordance with the Companies Act, SEBI’s Listing Obligations and Disclosure Requirements (LODR), and other applicable laws, subject to shareholder approval.

In addition to the equity route, the board is also set to consider enhancing the company’s limit for raising funds through non-convertible debentures (NCDs) on a private placement basis. The proposed increase would double the current borrowing cap from ₹10,000 crore to ₹20,000 crore for the financial year 2025–26, again subject to regulatory and other necessary approvals.

The company also clarified that its trading window for designated persons and their immediate relatives will remain closed until Sunday, July 27, 2025. This is in compliance with SEBI’s Prohibition of Insider Trading Regulations and the company’s own internal code of conduct.

Strong Operational Momentum in Q1

The upbeat mood around the stock was further supported by Poonawalla Fincorp’s earlier disclosure on July 4, where it reported robust growth in its assets under management (AUM). As of June 30, 2025, the company’s AUM rose nearly 53 percent year-on-year to ₹41,250 crore. On a sequential basis, the company witnessed a healthy 16 percent increase in AUM.

The NBFC also reported strong liquidity of ₹4,450 crore at the end of the first quarter, reinforcing its financial stability. “In line with our guidance, we have completed the launch of six new businesses and are seeing positive traction,” the company said in its quarterly update.

Stock Performance

The Poonawalla Fincorp stock climbed as much as 3.2 percent during Monday’s session, touching an intra-day high of ₹466.20. Earlier this month, the stock had reached a 52-week high of ₹483.35 and is currently trading just 3.5 percent below that peak. On the flip side, the stock hit its 52-week low of ₹267.25 in March 2025.

Over the past year, the stock has delivered a moderate return of 10 percent. However, the near-term trend has been more volatile. While the stock has declined about 1 percent so far in July after four consecutive months of gains, it posted impressive monthly returns prior to that—15.4 percent in June, 7.5 percent in May, 7 percent in April, and a sharp 24.5 percent rally in March. The downtrend was seen earlier in the year, with a 9.4 percent drop in February and a marginal 1.3 percent decline in January.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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