Poonawalla Fincorp has been among the top three gainers since the morning today and continues to remain there. The stock, which had closed yesterday at Rs.447.70, opened slightly higher at Rs.450.15 and soon climbed up to a new 52-week high at Rs.513.30 and continues to trade high.

The stock is up today on account of fund infusion by promoter.

The promoter entity, Rising Sun Holdings Pvt. Ltd., is putting in Rs.1,500 crore into Poonawalla Fincorp through a preferential share issue/private placement. The shares are being allotted at Rs.452.51 per share.

As a result of this allotment, promoter’s shareholding will go up from 62.43% to 63.97%.

The promoter investing heavily (via preferential allotment) generally signals confidence in the company’s prospects. This often reassures investors, explaining the sharp upward move. Investors may be expecting that with this capital, Poonawalla Fincorp could ramp up growth, improve profitability (if cost of funds is managed, credit costs kept under control).

Yet keep a watch on the earnings as that is what matters ultimately - despite the positive developments, there are some headwinds: the company reported a 78.5% (YoY) drop in consolidated net profit for Q1FY26. Even with growth in interest income, if non-interest expenses, credit losses, or provisioning are high, margins could be squeezed.