Home / Companies / News /  Magma Fincorp gets Rs500 crore investment from KKR, IVFA, Leapfrog

Mumbai: Kolkata-based non-banking finance company (NBFC) Magma Fincorp Ltd on Monday announced that its board has approved preferential allotment of equity shares worth 500 crore to private equity (PE) investors such as KKR and Co. LP, Indium V and LeapFrog Investments.

Indium V is an investment vehicle advised by India Value Fund Advisors (IVFA).

“Magma will use the new capital to grow its business and capture opportunities created by India’s economic growth and improving financial markets," the firm said in a statement to BSE.

Indium and LeapFrog, which are new investors in the company, will invest 220 crore and 200 crore, respectively, while KKR, which first invested in Magma in 2011, will invest 80 crore. The company will issue 46.3 million equity shares at a price of 108 per share.

“For this round of growth, 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," said Sanjay Chamria, vice-chairman and managing director of Magma Fincorp.

Magma deals in several financial products such as financing of utility vehicles and cars, commercial vehicles, loans to small and medium enterprises, affordable housing finance and general insurance.

Shares of Magma Fincorp closed at 94.90, up 14.13%, on BSE, while the benchmark Sensex rose 1.88% to 27,975.86 points.

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