Magma Fincorp soars 45% in 3 days on improved collection efficiency in Q3

Magma Housing Finance has progressed in its action for raising capital, with the aim of accelerating growth in this segment amid strong demand

Shares of Magma Fincorp were locked in the 10 per cent upper circuit band at Rs 84.95, surging 45 per cent in three days, after the company said disbursements in December quarter (Q3FY21) grew by 45 per cent year on year (YoY) driven by pick-up in used assets and affordable housing.

The company registered improvement in collections, with collection efficiency of 90 per cent in October and November, and 94 per cent in December 2020. The bounce back in vehicle sales has been stronger than anticipated and demand for mobility and own housing will drive lending in 2021, it said.

The stock