Magma Fincorp To Raise Upto Rs 2,000 Cr Debt

Kolkata based - Magma Fincorp Ltd will raise upto Rs 2000 cr through various debt instruments in the next six months. The The company would raise the funds through bank loans, debentures, bonds and securatised papers.

Magma Fincorp Limited provides various financial products and services to individual and corporate customers in India. It offers a range of financial products and services, including commercial vehicle finance, construction equipment finance, car and utility vehicle finance, refinance, strategic construction equipment finance, SME loans, and insurance.

The company posted a 39% rise in PAT for the quarter ended September 2009 at Rs 15.75 cr, against 11.28 cr in the same period last financial year on a consolidated basis.

In the second quarter the company disbursed Rs 892 cr, against Rs 876 cr in the same period last financial year, showing a marginal increase of about 1%. Over the Q1 of 2009, the disbursals increased by 21%.

The company recently signed a JV agreement with HDI Gerling, part of the Talanx Group, to form Magma HDI General Insurance Company Limited. The new insurance company has applied to the Insurance regulator IRDA for necessary licenses to commence operations, and is expected to be functional by the first half of the next financial year.

Earlier in Sept, Bengal Tools Ltd acquired a 0.298% stake in Magma Fincorp Ltd. Under the transaction, Bengal Tools Ltd acquired 0.1 mn shares. Post acquisition Bengal Tools Ltd will hold 0.55% stake in Magma Fincorp Ltd.

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