Asset finance company, Magma Fincorp Limited, raised Rs 122.42 crore through Qualified Institutional Placement (QIP) route to augment their capital requirements considering its growth plans.
Magma issued 4,067,220 shares at Rs 301 each to a host of institutional investors who are Qualified Institutional Buyers. Over 90 per cent of the subscription to the issue came from the overseas investors. In a release the company said that the allotment of the shares was approved by the committee of directors on May 12.
The company has maintained a CAGR of 27 per cent in its disbursements during the past five years. The company expects its foray into the high yield products such as tractor, used commercial vehicles to contribute in improved profitability.
“The amount raised will be used to expand Magma’s business across the country keeping in sync with the vision of the company to become India’s largest retail finance company and also to protect and enhance stakeholders interest”, said Sanjay Chamria, Vice Chairman & Managing Director, Magma Fincorp Limited.
