PE-backed Magma Fincorp acquires Religare Finvest’s auto lease business
Magma Fincorp Ltd (MFL) has acquired the Rs 250 crore auto lease business portfolio from Religare Finvest, a subsidiary of Religare Enterprises Ltd (REL). The firm, however, did not disclose the financial details of the transaction.
The news comes coupled with the completion of the previously announced acquisition of GE Money Housing Finance (GEMHF), an affiliate of GE Capital India and engaged in the housing finance business in the country.
Sanjay Chamria, vice-chairman and managing director of Magma Fincorp, said, “The acquisition will significantly help our fledgling auto lease business that we have recently launched. With this acquisition, Magma has got over 80 large corporate houses with more than 4,500 individual car customers. It will help expand its bouquet of offerings.”
With this move, Magma will establish itself not only as a serious car finance player for the corporate sector but will also cater to that sector’s requirements for other assets like IT systems, hardware and equipment, added Chamria. The company will also provide working capital loans as part of its SME offerings and expand its franchise.
In November 2012, Magma Fincorp signed definitive agreements for the acquisition of 100 per cent equity share capital of GE Money Housing Finance. That acquisition will also help Magma Fincorp gain access to around 10,000 existing customers. The total loan portfolio is estimated at Rs 1,320 crore, which also includes the home equity portfolio of GE Money Financial Service Pvt Ltd.
Kolkata-based NBFC Magma’s entry into the housing finance space is an extension of its existing business that revolves around financing of utility vehicles, cars, commercial vehicles, construction equipment, tractors and SME loans. It is backed by the private equity giant KKR and also by IFC, the private sector investment arm of World Bank.
(Edited by Sanghamitra Mandal)