Magma Fincorp Limited, backed by PE major KKR, has made its entry into housing finance business with the acquisition of certain affiliates of GE Capital India. Magma will acquire GE Money Housing Finance and home equity loans portfolio of GE Money Financial Services Private Limited.
GE Money Housing Finance has loan assets worth Rs 660 crore and net worth of Rs 193 crore while home equity loans portfolio of GE Money Financial Services Private Limited has assets worth Rs 940 crore as of 31 March 2012.
According to a company statement, the acquisitions will help Magma's entry into the affordable and middle-income housing finance sector. Sachin Khandelwal, former CEO of ICICI Home Finance, joined Magma recently to lead Magma’s housing finance business.
Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Limited said, “These acquisitions, while strengthening Magma’s presence in the retail lending space, also offer an excellent platform for Magma to leverage its network in the rural and semi-rural India for its home loans foray and further expand its product offerings to its over 7 lakh customers.”
Ambit Corporate Finance was the exclusive financial advisor to Magma on the above acquisitions.
