Poonawalla's buyout to aid Magma Fincorp's expansion plans: Analysts

With Poonawalla taking control and fortunes of Magma Fincorp (MFL) expected to change, investors rushed to buy the latter's shares which were locked in the 10 per cent upper circuit band

A change of guard at Magma Fincorp, with Adar Poonawalla-controlled Poonawalla Finance acquiring 60 per cent stake in the former, could turnaround fortunes of the West Bengal-based non-banking financial company (NBFC), say analysts.

Not surprising then, investors rushed to buy MFL shares which were locked in the 10 per cent upper circuit band at Rs 93.4 on the BSE – also its 52-week high. From its 52-week low of Rs 12.7, hit on May 28, 2020, the stock is up 635 per cent, BSE data show. In comparison, the S&P BSE Sensex has doubled during the period. In February alone,