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City-headquartered Magma Fincorp Ltd has said that it decided to issue shares worth over ₹500 crore on preferential allotment to three private equity investors — KKR, Indium V and LeafFrog Investments at ₹108 a share.
Magma in a disclosure to the stock exchanges said that its board on Monday approved the issue. KKR, which is already an investor in Magma Fincorp, would make fresh investment of ₹80 crore. Indium would inject ₹220 crore while ₹200 crore would be invested by LeapFrog.
Magma Fincorp, an NBFC, which unsuccessfully attempted to gain banking licence, has ₹381 crore paid-up capital. In February, it sought shareholders approval for issue of preference shares worth ₹150 crore.
For expansionThe company indicated the proposed investments are meant to extend its reach in the rural market. It currently has 238 branches in 25 States and Union Territories. It provides loans for commercial and utility vehicles, SMEs, construction equipment, tractors and affordable housing finance.
On Monday Magma Fincorp stock jumped around 12 per cent to close at ₹93 on the BSE.
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