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Shrachi Group has offloaded its entire stake in Magma Fincorp Ltd for an undisclosed amount.
The 5.62 per cent stake held by the Todi family of Shrachi Group would be picked up by the Magma promoters, Mr Mayank Poddar and Mr Sanjay Chamria, according to a company release.
Shrachi Group operates in the real estate, engineering, farm equipment and healthcare segments.
Mr S.K. Todi and Mr Ravi Todi, the erstwhile promoters of Shrachi Infrastructure Finance Ltd (SIFL) joined the Magma Board post- merger of SIFL into Magma in 2006, as non-executive Vice-Chairman and Joint Managing Director, respectively. They have now decided to focus on the Shrachi Group and exit the Magma Board. They would also cease to be promoters of the group.
“This follows a very successful consummation and integration of Shrachi into Magma, which post-merger has evolved in the past three years as a major force in retail asset financing in the country,” said Mr V. Lakshmi Narasimhan, Chief Financial Officer, Magma.
Post the merger of SIFL with Magma, the Magma promoters held 42.8 per cent, SIFL had 8.2 per cent stake, overseas investors had 21.3 per cent stake in the merged entity which came to be known as Magma Shrachi Finance. Eventually, the company went for capital raising through the QIP route which brought down the Shrachi promoters' stake to 5.62 per cent.
In 2008, the company changed its name to Magma Fincorp Ltd on receiving approval from shareholders and board of directors.
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