Kolkata-based Magma Fincorp has raised close to ₹500 crore through qualified institutional placement (QIP). After the fund mop-up, the company’s networth has increased by close to 25 per cent.
According to Kailash Baheti, Chief Financial Officer, Magma Fincorp, the funds would be used to meet its growth needs this fiscal.
Goldman Sachs India, ICICI Prudential Life Insurance, HDFC Standard Life and Amansa Holdings are among some of the investors who were allotted shares in the issue, said a press statement issued by the company.
Following the QIP issue, the promoters’ stake in the company has come down to 24.5 per cent from 27 per cent.
In the current round of funding, Singapore-based Amansa Holdings has become the largest investor picking up 32 per cent of the issue size, followed by Goldman Sachs India and HDFC Standard Life Insurance at 14 per cent each, ICICI Prudential Life at 12 per cent and England-based fund DB International Asia at 5.05 per cent, Baheti said.
Among existing investors are, private equity firm TrueNorth, which holds 10.49 per cent stake, World Bank-arm IFC (8.54 per cent) and private equity firms LeapFrog Financial (4.91 per cent) and KKR (1.36 per cent).
AUM dips to ₹15,600 cr
The company, which has been focusing on product re-composition and asset quality management to improve its portfolio, had seen a de-growth in its assets under management (AUM) in the last three years. Its AUM, which was at ₹19,000 crore in 2015-16, has come down to ₹15,600 crore as of end-Q3 FY18.
However, the NBFC is now hopeful of growing its AUM during the current fiscal. “In Q4 of FY18, there has been a growth in our AUM. We expect this momentum to continue,” he said.
The NBFC is looking to ramp up the used-assets financing business. The share of used assets financing to total vehicle finance book, which was at 22 per cent in FY16, increased to 33 per cent in Q3 of FY18. This is further expected to grow to 40-45 per cent by FY20, he said.
Magma will also focus on commercial vehicle financing and go a bit slow on the ‘more volatile’ business of tractor finance.
On Wednesday, the shares of Magma Fincorp closed at ₹169.10, up 0.65 per cent, on the BSE.