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Home >Companies >News >Magma Fincorp renamed Poonawalla Fincorp after takeover by Adar Poonawalla

Non-banking finance company Magma Fincorp Ltd (Magma) on Thursday announced that it has changed its name to Poonawalla Fincorp Limited effective today, 22 July, 2021, following the acquisition of controlling stake by Adar Poonawalla-led Rising Sun Holdings Private Limited.

Along with this, the company's fully-owned housing finance subsidiary Magma Housing Finance Limited is also renamed as Poonawalla Housing Finance Limited, the company said in a statement.

"In its new avatar under Poonawalla brand, the group will be focusing on consumer and MSME segment. As a part of new strategy, the company will expand its product range to include Personal Loans, Loans to Professionals, Merchant Cash Advance, Loan against Property, Consumer Finance and Machinery Loans along with existing products of Business Loan, Pre-Owned Car Loans and Home Loans," it further stated

Commenting on the name change, Adar Poonawalla, Chairman, Poonawalla Fincorp Limited said, “We are delighted to announce the rebranding of Magma Fincorp under the Poonawalla brand as "Poonawalla Fincorp". This marks the beginning of not only a change of brand but the fundamental way in which we will do business. From new products to new geographic locations across India; we hope to serve every citizen, helping them in fulfilling their personal and professional aspirations."

Earlier this month, the company's board had approved a proposal to enter a co-branded credit card arrangement for issuance of co-branded credit card, subject to obtaining necessary approvals from the regulatory authority(ies).

Adar Poonawalla was appointed as the chairman of the company on 31 May, 2021. Poonawalla is also the chief executive officer of Serum Institute of India, the maker of Oxford University-AstraZeneca Covishield vaccine in India.

In March, Magma had said its shareholders have approved the company's plan to raise up to 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.

Further, it has also appointed Vijay Deshwal to take charge as the CEO at Magma Fincorp from the first week of July. He will also be the Group CEO of Poonawalla Group’s financial services business.

Magma Fincorp operates in retail finance, SME finance, housing finance and general insurance business. It has been catering for three decades to semi-urban and rural markets as a systemically important non-deposit taking NBFC.

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