Grihum Housing Finance Limited (formerly Poonawalla Housing Finance Ltd) announced on Thursday that they have been assigned the notable ratings from CRISIL.
Grihum’s short-term debt instruments have been rated ‘CRISIL A1+’, while its long-term debt instruments or bank debt and non-convertible debentures (NCDs) received a ‘CRISIL AA-/Stable’ rating.
The main reasons for Grihum’s rating include robust capitalisation level, fund-raising ability, pan-India presence with 195 branches across 19 states, access to a diversified funding mix at lower funding costs and a stable leadership team.
It also factored in the expectation of support from global private equity firm, TPG to Grihum, both on an ongoing basis and in the event of exigency. After acquiring, TPG committed Rs 1000 crore of fresh capital to the company.
The first tranche of Rs 538 crore was infused into Grihum in August 2023. With strong capital buffers, exemplified by a total capital adequacy ratio of 46.35 per cent as of September 30, 2023, the company is supposedly in position to sustain its growth trajectory and safeguard against any deterioration in asset quality.
Speaking on the development Manish Jaiswal, Managing Director & Chief Executive Officer of Grihum, said, “The latest CRISIL ratings for Grihum establish it as a Company with one of the best credit ratings amongst PE backed Affordable Housing Finance organisations, validating the strength of our robust business model and efficient liability management. Grihum is deeply committed to providing housing finance, particularly to Self Made Individuals (SMIs) in India’s semi-urban regions.”
“Over the last six years, we have achieved an impressive 4X growth, an Asset Under Management (AUM) of approximately Rs 7500 crores and a customer base exceeding 75,000. With the ongoing structural economic development and the urbanisation trend in India, we are strategically positioned to turn the aspirations of millions of first-time homebuyers into reality,” he added.
It is to be noted that in July, TPG, a leading global alterative asset management firm, completed the acquisition of a 99.02% equity stake in Poonawalla Housing Finance Limited.
