Magma Fincorp gets Rs 500 crore investment

Kolkata-based non-banking finance company Magma Fincorp has approved preferential allotment to the tune of Rs 500 crore to a clutch of investors including KKR, Indium V and Leapfrog Investments.

Indium, an investment vehicle advised by India Value Fund Advisors (IVFA), and Leapfrog, both new investors in the company, will invest Rs 220 crore and Rs 200 crore respectively in Magma, the NBFC said.

KKR, which had invested earlier in Magma in 2011, will inject an additional Rs 80 crore into Magma. The company will issue 4.63 crore equity shares at a price of Rs 108 per share, Magma said.

Magma will use the new capital to grow its businesses and capture opportunities created by India’s economic growth and improving financial markets, Magma said.

“For this round of investment, we have carefully selected partners who are firm believers in India's growth story and believe in Magma’s business model, people wealth, asset quality and outstanding customer relationships in the rural and semi-rural India. They are providers of long term strategic capital that can help Magma attain the next level of growth,” Magma Fincorp vice chairman and managing director Sanjay Chamria said.

All the investors share the long term vision of Magma to create a world class financial services organisation. “We look forward to their contribution across strategic and operational aspects of the organisation. Our existing investors and  KKR, by retaining their stake in the company, have reaffirmed their belief in the growth prospects of the company,”adds Chamria.

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