CEO of Serum Institute of India ltd., Adar Poonawalla, who is considered as the vaccine king will acquire 60% stake by spending 32.1 Billion INR in Magma Fincorp. The Magma Fincorp is Kolkata-based Indian financer for vehicles and homes, founded in 1988 by Mayank Poddar and Sanjay Chamria.
In the regulatory filing Magma Fincorp expressed that through preferential allotment, the deal will take place via a fresh capital raised amount to Rs 3,546 crore. The company said in the statement that in the transaction, the Magma Fincorp will allot 3,57,14,286 shares to Mayank Poddar and Sanjay Chamria, and the shares to Rising Sun Holdings will be 45,80,00,000.
Post the issue the preferential allotment will constitute 64.68% of Magma Fincorp’s equity share capital. As per the current share holding pattern in the entity post issue paid up capital would be 60% stake by Rising Sun holdings private limited and group share stake of the promotor would be reduced to 13.3%. The net worth will be increased to over Rs 6,300 crore for Magma Fincorp as per subject to all required regulatory approvals.
Poonawalla is planned to be nominated by Rising Sun Holdings Private Limited as the Chairman among the board of Directors . Abhay Bhutada, is nominated to be the Currently Managing Director & CEO of Poonawalla Finance. The company said that Chamria will continue as the Executive Vice Chairman.
On March 9, Magma Fincorp’ will held an extraordinary general meeting. The purpose of the meeting will be seeking shareholder’s nod on preferential basis to Rising Sun Holdings Private Limited and others for issuance of equity share. Magma Fincorp’s Vice Chairman and Managing Director, Chamria said that the company would be helped to be driven into a growth trajectory higher, and will make better Overall ROE, enhance credit rating, advantage from potential lower cost of funds and huge distribution network will be additionally leveraging.
