Adar Poonawalla-backed firm to acquire majority stake in Magma Fincorp for Rs 3,456 crore
The new firm will be called Poonawalla Finance.
SII CEO Adar Poonawalla (File Image: Twitter)
Rising Sun Holdings, a company controlled in personal capacity by Serum Institute of India CEO Adar Poonawalla, announced a transaction on February 10 to acquire a controlling stake in Magma Fincorp (MFL), a non-banking financial company (NBFC).
The deal will be carried out via a preferential issue of Magma Fincorp's equity shares worth Rs 3,456 crore. The deal also includes an open offer as per SEBI norms.
According to an official statement, the deal “ is subject to shareholders’ and other regulatory approvals and represents 64.68 percent of MFL’s enhanced equity share capital post the issue. Based on current shareholding, Rising Sun Holding would hold 60 percent stake in the entity post issuance and the existing promoter group stake would get reduced to 13.3 percent post issuance. The net worth of MFL shall increase to over Rs 6,300 crore post the issuance.”