Magma Fincorp shares jump 10 pc on Poonawalla Group deal
- Country:
- India
Shares of Magma Fincorp zoomed 10 per cent in early trade on Thursday as the Poonawalla Group is acquiring a controlling 60 per cent stake in the non-banking finance firm.
The stock jumped 9.94 per cent to Rs 93.40 -- its 52-week high -- on the BSE.
At the NSE, it gained 9.99 per cent to Rs 93.55.
The Poonawalla Group is acquiring a controlling 60 per cent stake in non-banking finance firm Magma Fincorp by subscribing to a Rs 3,456-crore preferential issue, the Pune-based company, better known for the Serum Institute, said on Wednesday.
The company, which has a fledgling NBFC arm called Poonawalla Finance which lends mostly to professionals, said the acquisition will be done through a group company called Rising Sun Holdings.
The transaction, subject to shareholders and regulatory nods and through a preferential issue of equity shares of Magma Fincorp worth Rs 3,456 crore, will result in Rising Sun taking over the company with 60 per cent stake and an open offer under applicable Sebi guidelines, the statement said.
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