ESOP 2024: Poonawalla Fincorp rewards employees with 500K stock options, records 52% AUM growth

Poonawalla Fincorp, a leading financial services provider, has announced a significant boost to its employee benefits package, granting 500,000 stock options to eligible employees under its Employee Stock Option Plan (ESOP) 2024.

The stock options were approved by Poonawalla Fincorp's Nomination and Remuneration Committee at a meeting held on September 2. The options will be granted at an exercise price of Rs. 390.60 per share.

Poonawalla Fincorp share price was trading in red, down 0.50 per cent at ₹386.25, on BSE on September 3, at 1:33 pm. The company has a market capitalization of ₹30,009.43 crore.

In a filing with the National Stock Exchange of India Limited and BSE Limited, the company stated that the vesting of these stock options will follow the schedule outlined in the ESOP-2024 - Scheme II. This grant aligns with the regulations set forth by the Securities and Exchange Board of India (SEBI).

Poonawalla Fincorp financial results

Poonawalla Fincorp reported a robust performance in the first quarter of FY25, with Assets Under Management (AUM) reaching ₹26,972 crore. This marks a significant 52% increase year-over-year (YoY) and an 8% rise quarter-over-quarter (QoQ). The company's AUM portfolio is diversified, comprising 35% in MSME finance, 28% in personal and consumer finance, 17% in loans against property, and 14% in pre-owned car finance.

The company has also demonstrated consistent improvement in asset quality, with its gross Non-Performing Assets (NPA) ratio dropping to 0.67%, a reduction of 75 basis points YoY and 49 basis points QoQ. Similarly, the net NPA ratio declined to 0.32%, down by 44 basis points YoY and 27 basis points QoQ. Poonawalla Fincorp’s Provision Coverage Ratio stood at 52.53%.

The company also saw a strong increase in operating profit, which grew by 47% YoY and 6% QoQ, amounting to ₹432 crore. Additionally, Poonawalla Fincorp maintained a solid Capital Adequacy Ratio of 31.57%, with Tier-1 capital at 30.09%, comfortably surpassing the regulatory requirement of 15%. The firm also held a liquidity buffer of ₹5,192 crore.