Magma Fincorp aims Rs 3,000cr asset growth in FY20

Magma Fincorp Ltd is eyeing an asset growth of around Rs 3,000 crore in the 2019-20 fiscal, a top official of the company said on Thursday.

"Our dependence on bank funds is about 70 per cent, and in the current year, we hope to bring it down to 60 per cent. Ideally, we want it to be 50 per cent in two years," Magma Fincorp President and Group CFO, Kailash Baheti, said on the sidelines of its maiden NCD issue.

The company aims to raise up to Rs 500 crore in secured NCDs, including the greenshoe option.

"We are looking at an AUM growth of 3,000-3,500 crore in FY20 from about Rs 17,000 crore at present," Baheti said.

The NBFC has started to tap the retail sector, too, to raise 10-15 per cent of its total funds, he said.

Baheti said in the current fiscal, it will also explore foreign funds, including external commercial borrowing (ECBs).

Magma Fincorp said it has offered high coupon rates up to 10.75 per cent for the maiden issue, but in subsequent tranches, it will offer lower interest.

The company will raise around Rs 1,000 crore through retail NCDs, he added.