Magma Fincorp Raises Rs. 122.42 Crores through QIP

Leading asset finance Company, Magma Fincorp Ltd, raised Rs.122.42 crores through Qualified Institutional Placement (QIP) route 10 augment their capital requirements considering its growth plans during the ensuing years.

Magma issued 4,067,220 shares at Rs. 301/- each to a host of institutional investors who are Qualified institutional Buyers. Over 90% of the subscription to the issue came from the overseas investors. The allotment of the shares was approved by the Committee of Directors on the May 12, 2010. The Company has been growing consistently and has maintained a CAGR of 27% in its disbursements during the past five years. Its foray into the high yield products i.e. Tractor, Used Commercial vehicles is expected to contribute in m proved profitability.

"The amount raised will be used to expand Magma's business across the county keeping in sync with the vision of the Company to become India's largest retail finance Company and also to protect and enhance stakeholders interest", said Mr. Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Ltd.

The stock was trading at Rs.303, up by Rs.3.45 or 1.15%. The stock hit an intraday high of Rs.305 and low of Rs.300.05.

The total traded quantity was 16600 compared to 2 week average of 187239.

Source : Equity Bulls

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