Magma Fincorp Limited's Unsecured Subordinated Redeemable Non-convertible Debentures (ACUITE AA) has been placed under watch with positive implication.
ACUITE is of the view that pursuant to announcement made by Magma regarding the proposed sale of a controlling 60% stake in the Company to Rising Sun Holdings Private Limited, an entity controlled by Mr. Adar Poonawalla, the CEO of Serum Institute of India. The expected equity infusion of Rs. 3456 crores in the Company Limited will strengthen the capital position of Magma and its subsidiaries in a very significant manner which in turn will help to enhance its business profile over the medium term. The rating also factors in healthy capitalisation levels marked by capital adequacy of 28% as on December 31, 2020 and a healthy liquidity profile of Magma on a consolidated basis supported by the demonstrated ability to attract funds from various sources like banks, capital markets and overseas investors. The rating also continues to take into consideration the Company's established presence of nearly three decades in retail financing coupled with its experienced management.
Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.119.1 as compared to the previous close of Rs. 113.45. The total number of shares traded during the day was 3716 in over 25 trades.
The stock hit an intraday high of Rs. 119.1 and intraday low of 119.1. The net turnover during the day was Rs. 442575.