MAGMA FINCORP ACCEPTS INFUSION OF RS 3456 CRORE

The Board of Magma Fincorp has accepted, subject to approval of the shareholders and the required Statutory and Regulatory approvals, a binding offer for infusion of Rs. 3,456 crores, through the preferential issue of 49,37,14,286 equity shares at a price of Rs. 70 per share.

The transaction envisages the issuance of equity shares on preferential basis to the following parties:

− 45,80,00,000 shares for Rs. 3,206 crores to be issued to Rising Sun Holdings, a company controlled by Adar Poonawalla

− 3,57,14,286 shares for Rs. 250 crore to be issued to Sanjay Chamria and Mayank Poddar, the existing promoters of the Company, distributed equally

− The transaction would result in the Rising Sun Holdings taking a controlling stake of 60.0% in the post issue capital of the Company.

Rising Sun Holdings would also be classified as Promoter of the Company, together with the existing Promoter Group.

? The preferential issue would result in the infusion of Rs. 3,456 crores of straight equity into the Company, thereby augmenting the networth in excess of Rs. 6,300 crores, enhancing the capital adequacy from 28% as of 31 December 2020 to 68% post issuance

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