Magma Fincorp has announced that its board of directors have approved preferential allotment of equity shares worth Rs 500 crore (about $80 million) to a clutch of investors including KKR, Indium (an investment vehicle advised by India Value Fund Advisors), and LeapFrog Investments.
The Kolkata-headquartered NBFC, which is registered with the RBI as an asset finance company, 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).
Indium and LeapFrog, both new investors in the company, will invest Rs 220 crore and Rs 200 crore, respectively, the Kolkata-based NBFC said in a regulatory filing with the BSE. KKR, which first invested in Magma in 2011, will inject an additional Rs 80 crore.
The transaction is subject to customary regulatory approvals. The company finances utility vehicles and cars, new and used commercial vehicles, construction equipment, tractors and SMEs. It also operates in the affordable housing finance and general insurance segments.