Fincorp MD exit won’t affect business: Adar Poonawalla

Poonawalla said he would put in a small amount and offer bulk of the rest to investors if the old promoter sold their stakes.

Adar Poonawalla, chairman of Poonawalla Fincorp, said at an investor call that the original promoters of the company (Sanjay Chamria, promoter of erstwhile Magma Fincorp) were willing to sell their stake in Poonawalla Fincorp and he would buy their stake along with other investors.

He currently holds 60% in Poonawalla Fincorp, after acquiring a majority stake in Magma Fincorp and re-naming it. Poonawalla said he would be happy to raise his stake but did not want to take his holding to 70%. He wanted to have a larger retail participation in the firm’s growth story. Poonawalla said he would put in a small amount and offer bulk of the rest to investors if the old promoter sold their stakes.

Calling the Poonawalla Fincorp managing director, Abhay Bhutada’s resignation as an unfortunate incident, Poonawalla said his exit would not affect business.