Magma Fincorp Ltd explores opportunities for creating value to stakeholders

The Board of Directors of Magma Fincorp Ltd in a specially convened board meeting held today, looked at options for value creation for the stakeholders and approved the following initiatives to unlock value for its shareholders.

- Focus on funding high yield products like Used assets i.e., Used Cars/CV/CE and Tractors - used and new, and working capital loans for SMEs, and not underwrite low yield products viz., new Cars, CV and CE.

- Work towards value enhancement in the affordable housing finance subsidiary, Magma Housing Finance Limited through appropriate reorganization structure, and subject to requisite regulatory and other approvals. In parallel, consider capital raise from financial/strategic investors for funding planned growth of Magma Housing Finance.

- Work on dilution of Magma group's stake in Magma HDI General Insurance Company Limited (Magma HDI) by fresh capital raise in Magma HDI and/or sale of a part of Magma's stake in Magma HDI, and subject to requisite regulatory and other approvals.

These initiatives are expected to free up capital for future profitable growth and help in stakeholders' value creation. The Board has formed an empowered group comprising of Managing Director, 2 independent directors and an investor observer to oversee the process and recommend to Board on the various value creation proposals and also ensure timely implementation of the initiatives.

Shares of MAGMA FINCORP LTD. was last trading in BSE at Rs.40.25 as compared to the previous close of Rs. 38.45. The total number of shares traded during the day was 385318 in over 1910 trades.

The stock hit an intraday high of Rs. 41.35 and intraday low of 37.95. The net turnover during the day was Rs. 15422490.

Source : Equity Bulls

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