11-02-2021

Adar Poonawalla-controlled Rising Sun Holdings takes over Magma Fincorp, promoter of Magma HDI General Insurance Company Limited

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11-02-2021
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Adar Poonawalla-controlled Rising Sun Holdings takes over Magma Fincorp, promoter of Magma HDI General Insurance Company Limited

Adar Poonawalla controlled Rising Sun Holdings Pvt will be acquiring a majority shareholding in Magma Fincorp Ltd.

The transaction is slated to be concluded through a preferential share allotment worth Rs 3,456 crore, as per an exchange filing by Magma Fincorp.

Magma Fincorp will be renamed to Poonawalla Finance and Magma Fincorp will allot 45.8 crore shares to Rising Sun Holdings and 3.57 crore shares to Sanjay Chamria and Mayank Poddar who are the existing promoters.

Rising Sun Holdings will be holding 60% stake in the NBFC and the current promoter shareholding will come down to 13.3%. According to the statement, the net worth of the non-bank lender will rise to Rs 6,300 crore.

The statement further reads, “Strong corporate backing and substantial fund infusion is likely to have a positive effect on the credit rating of the company as well and This infusion would also enable Magma Fincorp to further invest in its housing finance subsidiary and general insurance joint venture, as required.”
Adar Poonawalla is the Chief Executive Officer of Serum Institute of India, the manufacturer of Astrazeneca-Covishield vaccine. He will be appointed as the chairman of the board of the non-bank lender and Ajay Bhutda will continue to work as Managing Director and Chamria would assume the role of executive vice chairman.
Magma Fincorp is active in the lending of vehicle, housing and MSME base and also has a presence in the general insurance industry.
Source: The Economic Times

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