Shares of Magma Fincorp rose by 8 per cent on Friday's trading session following the announcement of Rising Sun Holdings acquiring a controlling stake in Magma Fincorp Limited.
New Delhi (Anish Yande): Shares of Magma Fincorp rose by 8 per cent on Friday's trading session following the announcement of Rising Sun Holdings acquiring a controlling stake in Magma Fincorp Limited. Magma Fincorp shares opened at Rs 150 per share from its previous close of Rs 144 per share on Thursday. The shares of the non-banking financial company rose to an intraday high of Rs 151 per share. The market cap of the company rose to Rs 11,610 crore.
Rising Sun Holdings acquires a controlling stake in Magma Fincorp:
Rising Sun Holdings Private Limited, led by Adar Poonawalla, has acquired a controlling stake in Magma Fincorp Limited on May 21, 2021. The majority stake of the non-banking financial company was acquired through an equity infusion of Rs 3,456 crore.
Adar Poonawalla was appointed as the Magma Fincorp Limited's Chairman on May 31.Magma Fincorp Limited has been rebadged as Poonawalla Fincorp Limited.
In March 2021, the non-bank financial institution had stated that its shareholders have approved the plan to raise up to Rs 3,456 crore. The non-banking financial company had raised the amount by issuing preference equity shares to two promoters and Rising Sun Holdings.
The fully owned housing finance subsidiary of Magma Fincorp, Magma Housing Finance Limited has also been renamed as Poonawalla Housing Finance Limited.
Poonawalla Fincorp to introduce new products:
Following the acquisition of the majority stake, the group would be focusing on the consumer and MSME segments. The company group would expand its range of products to include loans against property, consumer finance, cash advances for merchants, personal, and professional loans.
The chairman of Poonawalla Fincorp Ltd, Adar Poonawalla stated, that the company would bring new products to new geographic locations across India. "We hope to serve every citizen, helping them in fulfilling their personal and professional aspirations." Adar Poonawalla stated.
Adar Poonawalla is the Chief Executive Officer of Serum Institute of India. The Serum Institute is one of the leading manufacturers of vaccines across the world. Serum Institute of India is manufacturing the Oxford-AstraZeneca vaccine for preventing the spread of COVID-19.
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