Magma Fincorp received an investment of Rs 440 crore led by funds managed by Kohlberg Kravis Roberts & Co LP along with International Finance Corporation (IFC). The capital infusion will be used to support Magma’s growth plans in existing businesses in addition to newer areas.
Magma Fincorp is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. The company, having started operations over two decades back, is listed on the Bombay Stock Exchange and the National Stock Exchange in India.
"Maintining our aggressive growth pattern, we expect to increase our disbursements by 50% in FY12, reduce our dependency on securitization and maintain a healthy NIM via greater contribution from higher yielding products. With this capital infusion, we believe Magma is well positioned to capitalise on its existing business opportunities, increase its thrust into new products in addition to accretive M&A," said Sanjay Chamria, vice chairman & managing director of Magma.
We believe that our partnership will help propel the growth in rural and semi urban segments by promoting consumer credit, agri lending and corporate lending to small and medium scale enterprises,” said Sanjay Nayar, member of KKR and Head of KKR India.