PE-backed Magma Fincorp plans to raise more funding

Magma Fincorp Ltd, a non-banking financial company (NBFC) backed by a clutch of private equity funds, is planning to raise more funds, the company said in a stock market disclosure.

It did not disclose the amount of funding nor the mode through which it plans to raise the money.

The company’s board is meeting on May 7, 2014 (Wednesday), to take up the audited financial results for the year ended March 31, 2014. The firm said the board will also plan to raise funds/resources by issuance of securities.

In February this year, IFC lent $35 million to Kolkata-based Magma, one of the top 20 NBFCs in India, with presence in 21 Indian states with 280 branches primarily targeting the semi-urban and rural markets.

Magma, which is in the business of lending loans against trucks, farm equipment and to small businesses, had a portfolio volume of Rs 17,220 crore as of December 31, 2013.

KKR holds 16.05 per cent stake in the company with IFC owning 12.1 per cent stake and ChrysCapital holding 9.6 per cent.

Shares of Magma Fincorp were trading at Rs 78.25 each, up 2.10 per cent in a strong Mumbai market on Monday at 2 PM.

(Edited by Joby Puthuparampil Johnson)

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