Magma Fincorp jumps 10% as Adar Poonawalla to acquire 60% stake in firm

Adar Poonawalla-controlled Rising Sun Holdings will acquire a 60 per cent stake in non-banking financial company by subscribing to Rs 3,456-crore preferential issue

Shares of Magma Fincorp (MFL) were locked in upper circuit of 10 per cent at Rs 93.40 on the BSE in Thursday's intra-day trade after the company announced that Adar Poonawalla-controlled Rising Sun Holdings will acquire a 60 per cent stake in the non-banking financial company (NBFC) by subscribing to Rs 3,456-crore preferential issue. After the infusion of capital, Magma and its subsidiaries will be renamed and rebranded Poonawalla Finance.

The stock of Magma Fincorp also hit a fresh 52-week high today. In the past four trading days, it has rallied 60 per cent after the company said disbursements in