Magma Fincorp raises Rs 500 crore through QIP route

Magma Fincorp Limited, a leading NBFC with business interests in Asset Finance, Housing Finance, SME Lending and General Insurance raised Capital amounting to approximately Rs 500 crore at a price of Rs. 155 per equity share through Qualified Institutional Placement (QIP).The allotment of equity shares in the QIP has been completed.

With this capital raise, Magma's Net Worth has increased approximately by 25%.

Many renowned and marque institutional investors across India and Asia have shown interest and faith in Magma's unique business model which primarily caters to first-time buyers of vehicles, self-employed and non-professional individuals, small and medium entrepreneurs and customers with informal income and limited banking and credit history.

Few of the investors who were allotted shares in the issue are:

- Amansa Holdings Pvt. Ltd.
- Goldman Sachs India Ltd.
- ICICI Prudential Life Insurance Co Ltd.
- HDFC Standard Life Insurance Co Ltd.
- DB International Asia Ltd.

Commenting on the development, Mr. Sanjay Chamria, Vice Chairman & MD, Magma Fincorp Limited said, "We heartily welcome our new Investors and thank them for their faith in our company and management. We are positive that this collaboration, in addition to the loyal and continued support of the board and existing investors, will help Magma achieve strong growth and reach new heights in our business."

Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.169.1 as compared to the previous close of Rs. 168. The total number of shares traded during the day was 27381 in over 403 trades.

The stock hit an intraday high of Rs. 171.4 and intraday low of 167.5. The net turnover during the day was Rs. 4648300.

Source : Equity Bulls

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