Magma Fincorp raises Rs122.42 cr through QIP
Asset finance company, Magma Fincorp Limited has raised Rs122.42 crore through Qualified Institutional Placement (QIP) route to augment its 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 12th may 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 improved profitability.
"The amount raised will be used to expand Magma’s business across the country 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 Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Limited.
Magma Fincorp Limited is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company.