Magma Fincorp rises 5% as shareholders approve preferential allotment to Adar Poonawalla-led firm
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Last Updated: Mar 10, 2021, 10:15 AM IST
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Shareholders approved the company s plan to issue preference equity shares to Adar Poonawalla-controlled Rising Sun Holdings and two members from the promoter group.
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The Magma Fincorp scrip got locked in its 5% upper circuit limit at Rs 136.40 on BSE.
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NEW DELHI: The Magma Fincorp stock climbed 5 per cent on Wednesday after shareholders approved the NBFC s plan to raise up to Rs 3,456 crore by issuing preference equity shares to Adar Poonawalla-controlled Rising Sun Holdings and two members from the promoter group.
Non-banking finance company Magma Fincorp Ltd (Magma) on Tuesday said its shareholders have approved the company s plan to raise up to Rs 3,456 crore by issuing preference equity shares to Adar Poonawalla-controlled Rising Sun Holdings Ltd (RSHPL) and two members from the promoter group. The members of the company approved with requisite majority the preferential issue of 49,37,14,286 equity shares to RSHPL, Sanjay Chamria and Mayank Poddar at the extraordinary general meeting (EGM) held on Tuesday (March 9), Magma said in a regulatory filing. The company, whose promoter shareholding is slated to be changed to Poonawalla group as per the deal announced earlier this year, will allot 45,80,00,000 preferential shares to RSHPL for a consideration of Rs 3,206 crore.
Adar Poonawalla s Rising Sun Holdings notifies CCI about Magma Fincorp deal
The acquisition will enable RSHPL to achieve higher efficiencies in its existing businesses in the financial lending space as well as expand and diversify its operations in other business areas.
BusinessToday.In | March 4, 2021 | Updated 22:49 IST
Rising Sun Holdings is a part of Adar Poonawalla s Rising Sun group of companies.
Adar Poonwalla-led Rising Star Holdings Private Ltd (RSHPL) has filed a combination notice with the Competition Commission of India (CCI) about its 60 per cent stake acquisition in financial services company Magma Fincorp Ltd.
As part of the deal, RSHPL will acquire 60 per cent stake in Magma Fincorp, while the non-banking financial company s promoter Sanjay Chamria and Mayank Poddar will acquire 4.68 per cent shareholding.
Adar Poonawalla s Rising Sun Holdings notifies CCI about Magma Fincorp deal businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
Financials stocks were trading with gains, with the S&P BSE Finance index rising 146.64 points or 1.94% at 7703.16 at 09:48 IST. Among the components of the S&P BSE Finance index, Religare Enterprises Ltd (up 7.34%), South Indian Bank Ltd (up 6.1%),Satin Creditcare Network Ltd (up 5.51%),Dewan Housing Finance Corporation Ltd (up 4.8%),Cholamandalam Investment & Finance Company Ltd (up 4.74%), were the top gainers. Among the other gainers were Magma Fincorp Ltd (up 4.24%), MAS Financial Services Ltd (up 3.82%), General Insurance Corporation of India (up 3.62%), Shriram Transport Finance Company Ltd (up 3.4%), and IIFL Securities Ltd (up 3.31%). On the other hand, Dolat Investments Ltd (down 3.24%), Spandana Sphoorty Financial Ltd (down 2.87%), and Bank of Maharashtra (down 2.7%) moved lower.