Magma Fincorp announced that India Ratings & Research has placed the company's bank loan ratings (IND AA-) under Rating watch Evolving(RWE).
Ind-Ra is of the view that pursuant to public announcement on 10 February 2021, the Company had
announced that its board has accepted a binding offer for an equity infusion of Rs 3460 billion by way of
preferential allotment of equity shares to Rising Sun Holdings (RSHPL) an entity controlled
by Adar Poonawalla) and its existing promoters (Sanjay Chamria and Mayank Poddar).
Subsequently, as per the proposed transaction, RSHPL would hold a stake of 60% in the Company and would
be classified as a promoter. With this infusion, the Company's net worth would surpass Rs 6300 crore,
strengthening Company capital.
Ind-Ra believes that proposed transaction once culminated should
strengthen company's liability strength. The above transaction is subject to various regulatory approvals
and Ind-Ra would continue to monitor the transaction's progress.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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