Magma Fincorp to raise Rs 500 crore

Asset financing company Magma Fincorp today said that its board has approved preferential allotment of equity shares worth Rs 500 crore to a clutch of investors including KKR, Indium V, an investment vehicle advised by India Value Fund Advisors, and LeapFrog Investments.
The transaction is subject to customary regulatory approvals, the company said in a statement.
Indium and LeapFrog, both new investors in the company, would invest Rs 220 crore and Rs 200 crore respectively.
KKR, which first invested in Magma in 2011, would inject an additional Rs 80 crore.
The company will issue 4.63 crore equity shares at a price of Rs 108 per share (face value of Rs 2 and a premium of Rs 106).