Magma Fincorp shareholders approve acquisition by Rising Sun Holdings

Magma Fincorp said that its shareholders have approved Rising Sun Holdings‘ (RSHPL) acquisition of a controlling stake in the former.

In February 2021, Rising Sun Holdings, which is controlled by Serum Institute of India CEO Adar Poonawalla, had announced the deal with the non-banking financial company based in Mumbai.

The transaction will be executed via preferential issue of equity shares of Magma Fincorp and an open offer in compliance with the public announcement made under guidelines of SEBI (substantial acquisition of shares and takeovers).

Adar Poonawalla will be acquiring a 60% stake in Magma Fincorp.

As part of the transaction, Magma Fincorp will allocate 45.8 million shares to Rising Sun Holdings, and 3.5 million shares to Sanjay Chamria, the former’s vice chairman and managing director and the former’s chairman Mayank Poddar.

Rising Sun Holdings to acquire controlling stake in non-banking financial company Magma Fincorp. Photo courtesy of Pete Linforth from Pixabay.

The preferential allotment will represent a 64.68% stake in Magma Fincorp.

Adar Poonawalla said: “I truly appreciate the overwhelming response of the existing shareholders of Magma Fincorp in support of our bid to become the promoters with infusion of Rs. 3,206 crs and I look forward to quick completion of the transaction subject to regulatory and statutory approvals and fulfil the vision of serving the huge underserved segments of the society and building a great franchise.”