Mumbai-based asset finance company, Magma Fincorp Limited today announced that the company has raised INR 350 Crore by way of Non- Convertible Debentures (NCDs) from Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. (FMO), a Dutch Entrepreneurial Development Bank, to support the company's on-going growth plans. The NCDs issued on a private placement basis are unlisted, redeemable, senior secured and transferable.
This investment by FMO is under Voluntary Retention Route (VRR) for investment in Indian debt by FPI. Proceeds of the NCDs shall be utilized for the company's ongoing business operations including expansion and growth of its micro and small and medium enterprise (MSME) loan portfolio.
Commenting on the fund raise, Kailash Baheti, Chief Financial Officer, Magma Fincorp said, "The issuance to a well-known FPI namely FMO is a reflection of Magma's standing in the market and our strong connect with the investment community. We have strong legacy and have performed well even in adverse conditions in the past and thus the brand has been recognized for the expertise we have in the rural retail lending space."
Linda Broekhuizen, Chief Investment Officer FMO said: "Helping countries to meet the needs of the underbanked and underserved is an important part of FMO's strategy. We are proud to have Magma Fincorp as our partner on the ground and be able to further support the expansion of Magma's MSME loan portfolio. Magma Fincorp is specialized in financing solutions to the underbanked primarily in rural and semi urban areas therefore supporting the SDG 10, reduced inequalities."
Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.52.4 as compared to the previous close of Rs. 49.95. The total number of shares traded during the day was 7238 in over 34 trades.
The stock hit an intraday high of Rs. 52.4 and intraday low of 51.25. The net turnover during the day was Rs. 378273.