ICICI Venture, Morgan Stanley Private Equity Asia, Cyza Chem Pvt Ltd, a Poonawalla group company, and two other family offices are putting in Rs 525 crore in Magma HDI General Insurance, a joint venture between Magma Fincorp Limited and HDI Global SE, Germany. Of the Rs 525 crore, the fresh capital infusion will be to the tune of Rs 250 crore in the company, which will provide growth capital to meet the needs of expanding distribution capabilities of the company. The existing Magma group entities have done a secondary sale, which is to the tune of Rs 275 crore. The amount will allow the promoter Magma Fincorp and its group companies to comply with the Reserve Bank of India’s guidelines for ownership of a stake in insurance companies.
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Exclusive interview | Magma Fincorp is a full package; we welcome regulations that will help NBFCs stay disciplined: Adar Poonawalla
Adar Poonawalla of Serum Institute of India speaks about his group’s NBFC interest, the rationale of the Magma Fincorp acquisition, RBI’s discussion paper for the segment and much more.
Adar Poonawalla is the man of the moment without doubt and has started 2021 with a bang.
His firm Serum Institute of India, the world’s biggest vaccine maker, has been at the forefront of the nation’s fightback against the global pandemic by manufacturing crores of doses of Covishield, the coronavirus vaccine developed by Astra Zeneca plc and the Oxford University.
Adar Poonawalla-controlled Rising Sun Holdings has acquired a 60% stake in the non-banking financial company Magma Fincorp by subscribing to a Rs 3,456 crore preferential issue.