Comments
Magma Fincorp Ltd on Friday formally approved allotment of equity shares worth around Rs 500 crore on a preferential basis to three private equity players.
The Kolkata-headquartered NBFC will issue 4.63 crore equity shares at a price of Rs 108 per share (face value of Rs. 2 and premium of Rs 106).
As a result of the allotment, Zend Mauritius VC Investments Ltd, an affiliate of Kohlberg Kravis Roberts (KKR), would invest Rs 80 crore in Magma. Indium V (Mauritius) would inject Rs 220 crore and Rs 200 crore would be invested by LeapFrog Financial Inclusion India Holdings Ltd.
Magma Fincorp, an NBFC, which unsuccessfully attempted to gain banking licence, had Rs 381 crore paid up capital before this allotment.
Magma Fincorp indicated that 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.
Through this allotment, Zend’s stake would go up to 14.53 per cent in the expanded capital. Zend earlier had 14.11 per cent stake in Magma and KKR Mauritius Direct Investments Ltd had 1.55 per cent. The total combined holding of KKR group in Magma would now go up to 16.08 per cent.
Magma stock was up 4.43 per cent on the BSE at Rs 93.15.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.