Stocks

Magma Fincorp hits 52-week high after Poonawalla backed firm picks 60% stake

Our Bureau Mumbai | Updated on February 11, 2021

The shares of Magma Fincorp hit fresh highs on Thursday after Rising Sun Holdings Pvt Ltd controlled by Adar Poonawalla, CEO, Serum Institute of India announced its decision to acquire a 60 per cent stake in the company.

The company opened at a 52-week high of ₹93.40 on the BSE, up, ₹8.45 or 9.95 per cent as against the previous close of ₹84.95.

 

On the NSE, it opened at a 52-week high of ₹93.55, up ₹8.50 or 9.99 per cent as against the previous close of ₹85.05.

Rising Sun Holdings Pvt Ltd on Wednesday announced its decision to acquire a 60 per cent controlling stake in the Mumbai-based non- banking finance company for ₹3,456 crore.

As part of the transaction, Magma Fincorp proposes to allot 45.8 crore shares to Rising Sun Holdings, and 3.57 crore shares to Mayank Poddar, Chairman and Non-Executive Director, and Sanjay Chamria, Vice-President and Managing Director, Magma Fincorp.

Rising Sun Holdings will consolidate the business of Poonawalla Finance Private Ltd with Magma Fincorp post the transaction, according to a regulatory filing.

The company and its subsidiaries will be renamed and rebranded under the Poonawalla Finance brand name following the preferential issue.

Rising Sun Holdings along with Chamria and Poddar will also launch mandatory open offer to acquire up to 26 per cent stake at ₹70 a share.

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Published on February 11, 2021
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