Magma Fincorp Ltd (MFL) is consolidating its presence in the home finance sector, by completing the acquisition of home equity loans portfolio of GE Money Financial Services Pvt Ltd worth around Rs 810 crore.
This comes in the wake of the company acquiring the Rs 250-crore portfolio of auto lease from Religare Finvest.
In a communication to the stock exchanges today, Magma Fincorp said that in accordance with the definitive agreements to buy 100 per cent of home equity loans portfolio of GE Money Financial announced in November, it had completed the buyout process.
The company said it had completed the acquisition of 100 per cent equity share capital and took ownership of GE Money Housing Finance (GEMHF).
Sanjay Chamria, Vice-Chairman and Managing Director of MFL, said the acquisition would enable his company to launch its mortgage business in the country and provide it with a platform to enlarge its bouquet of products.
The buyout of GE Money Housing, which has an outstanding loan portfolio of about Rs 1,320 crore, including the home equity portfolio of GE Money Financial Services, would offer access to about 10,000 customers of GEMHF.
Magma Fincorp had been on the look out for acquisitions in an effort to reach out to “still untapped and under-banked customer segments’’ across India.
Auto lease business
He said that last week his company had completed the acquisition of the Rs 250-crore portfolio of auto lease from Religare Finvest.
This would help consolidate MFL’s recently launched auto lease business and with this, the company had got over 80 large corporates with more than 4,500 individual car customers. It will help expand its bouquet of offerings.
Sachin Khandelwal, CEO of the Mortgage Business of the Magma group, said the company has planned to roll-out over the next three years affordable housing business and the satellite and up-country markets would be a focus area for the business.