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Magma Fincorp is planning to raise ₹750 crore through the issue of securities in one or more tranches.
According to a notification to the bourses, the company will raise funds either through the issuance of equity shares, global depository receipts, American depository receipts, warrants or convertible securities, or a “combination thereof”. The exact mode is yet to be decided.
The company has also initiated a merger of Magma ITL Finance Ltd – a wholly owned subsidiary which is into tractor financing – with itself. The amalgamation is expected to “achieve greater integration and financial strength” and cost savings.
“As MITL is a wholly owned subsidiary [of MagmaFincorp], there would be no issue of shares by Magma Fincorp to shareholders of MITL,” the company said.
ResultsThe company, meanwhile, reported a near 5 per cent decline in standalone net profit to ₹37 crore for the quarter ending September this year (Q2 FY18). Net profit stood at ₹39 crore in the year-ago-period.
For the quarter under review, standalone profit before tax declined by 7 per cent year-on-year to ₹56 crore.
Total income during the period stood at ₹479 crore – an 8 per cent year-on-year decline.
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