Magma Fincorp rises 5% as shareholders approve preferential allotment to Adar Poonawalla-led firm

NEW DELHI: The Magma Fincorp stock climbed 5 per cent on Wednesday after shareholders approved the NBFC’s plan to raise up to Rs 3,456 crore by issuing preference equity shares to Adar Poonawalla-controlled Rising Sun Holdings and two members from the promoter group.

The members of the company approved with requisite majority the preferential issue of 49,37,14,286 equity shares to RSHPL, Sanjay Chamria and Mayank Poddar at the extraordinary general meeting (EGM) held on Tuesday, March 9, Magma said in a regulatory filing.

Following the development, the scrip got locked in its 5 per cent upper circuit limit at Rs 136.40 on BSE.

The company will allot 45,80,00,000 preferential shares to RSHPL for a consideration of Rs 3,206 crore.

Besides, Sanjay Chamria and Mayank Poddar (both members of the promoter and promoter group company) will be allotted 1,78,57,143 shares and 1,78,57,143 shares respectively for Rs 125 crore each.

Chamria is the Vice Chairman and Managing Director of the Kolkata-headquartered NBFC.

The transaction would result in Rising Sun Holdings taking a controlling stake of 60 per cent in the post-issue capital of the company.