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Ind-Ra places Magma Fincorp's bank loan rating under RWE

Capital Market 

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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First Published: Sat, February 20 2021. 14:52 IST