TA Associates, Leapfrog and others will invest Rs 500 crore ($75 million) in Fincare while PNB is looking to sell around 7 per cent stake in mortgage lender PNB Housing Finance.
TA Associates, others to put $75m in Fincare
The other investors in the round include True North, SIDBI, Tata Opportunities Fund, Kotak Life Insurance and Edelweiss Tokio Life Insurance.
“Today’s announcement will enable us to continue to build the infrastructure required to accelerate our growth, in line with our mission to facilitate a lifetime of progress at the base of the pyramid through financial and social inclusion,” said Rajeev Yadav, Group CEO, Fincare.
PNB to divest 7% stake in housing finance business
As per the report, the bank has already received interest from some PE players. Through the sale, it will be earning around Rs 1,200 crore.
Currently, PNB holds 39 per cent stake in PNB Housing Finance. Private equity firm General Atlantic Singapore Fund Fii Pte owns a 6.90 per cent stake in the mortgage firm, while the Government of Singapore holds another 1.07 per cent.