Kolkata-based Magma Fincorp Ltd has acquired Religare Finvest’s Rs 250-crore auto-lease business. Religare Finvest is a subsidiary of Religare Enterprises Ltd.
The acquisition will help Magma bring nearly 80-100 top corporates under its fold, said V. Lakshmi Narasimhan, chief financial officer of Magma.
The acquisition will add synergy to Magma’s existing auto business apart from helping the fledgling auto-lease business which it recently launched, Narasimhan told Business Line.
Magma provides finance for cars, commercial vehicles, construction equipment, used commercial vehicles, tractors and small and medium enterprises.
Magma and Religare entered into an ‘agreement for sale’ in December 2012 on the buyout and approached the Competition Commission of India for approval.
“Having received CCI approval, our acquisition is now complete,” he said.
The acquisition would not only boost the company’s car finance portfolio but also cater to their requirement in respect of other assets, including IT systems, hardware and equipment and provide working capital loans as part of its SME offerings.
The company also announced the successful completion of the acquisition of 100 per cent equity share capital of GE Money Housing Finance.