Kolkata: Kolkata-based Magma Shrachi Finance Ltd (MSFL), a company in which Anil Ambani’s Reliance Infrastructure and Consultants owns a 10% stake, is looking to team up with a global financial partner to expand its lending operations.
Magma, which in the year ended 31 March lent Rs3,512 crore, has a total asset base of Rs7,412 crore.
“We are lending in excess of Rs450 crore a month now. We are always in need of funds,” said Magma’s joint managing director Ravi Todi.
Magma, which posted an annual net profit of Rs50.54 crore in the year ended March, 61% higher than the previous fiscal, lends to buyers of commercial vehicles, used cars, tractors and construction equipment, among others.
Its total revenue in 2007-08 at Rs471.43 crore was 69% higher than last year.
Todi said “a large number of people” had shown interest in taking an equity stake in the company.
Recently, Cambridge Place Investment Management, a London-based fund with $8 billion (Rs34,080 crore) in assets under management, raised its holding in the company to 14.99% from 12.6% at the end of December.
“Though nothing’s going to happen immediately, in the long run we need to rope in a strong partner like Srei did,” Todi told Mint.
Last year, Kolkata-based finance company Srei Infrastructure Finance Ltd divested 50% in its equipment finance business to BNP Paribas for Rs775 crore.
“If we have a CAGR (compounded annual growth rate) of almost 50% going forward, we’ll have to think of raising funds through placement of shares with institutional investors. But, we are adequately capitalized for the time being,” said MSFL’s chief financial officer Anjan Mitra.