Magma Fincorp open offer from April 8

Magma Fincorp’s open offer will start on April 8 and close on April 26, the company said in a regulatory filing on Wednesday.

“Submission of the detailed public statement regarding the open offer for acquisition of up to 19.88 crore fully paid-up equity shares of face value of ₹2 each, representing 26 per cent of the expanded voting share capital of Magma Fincorp by Rising Sun Holdings Pvt Ltd together with Sanjay Chamria and Mayank Poddar...,” said the filing.

The open offer is being made at a price of ₹70, the detailed public statement said, adding that this amounts to a total of ₹1,391.82 crore.

Axis Capital has been appointed as the manager to the offer.

On February 10, the two companies had announced that Adar Poonawalla-controlled Rising Sun Holdings will take a 60 per cent stake in Magma Fincorp by subscribing to a preferential issue for ₹3,456 crore, triggering an open offer for 26 per cent.

Magma’s scrip closed 5 per cent higher at ₹113.45 apiece on BSE on Wednesday.

Credit rating

Meanwhile, in separate regulatory filings, Magma Fincorp said ICRA Ratings has placed its long-term fund-based term loans (ICRA AA-) on watch with developing implication.

“The proposed capital infusion would be a positive for the group’s capitalisation profile and would provide capital for both absorbing losses as well as fund growth over the medium term,” the agency said in its rationale for the rating.

“The transaction is subject to regulatory approvals, and ICRA would monitor the developments on this transaction and would take suitable rating action once it has clarity on the proposed business model of the company and the likely impact on the various credit metrices, and other organisation related changes.”

On February 16, Care Ratings, too, had placed Magma Fincorp’s long- and short-term bank facilities (CARE AA- / CARE A1+) on watch with developing implication.