You are here: Home » News-CM » Companies » News
Business Standard

Magma Fincorp update on liquidity position

Business Finance

Capital Market 

Magma Fincorp today announced that it remains very well capitalized with capital adequacy ratio of over 26%. The company has a granular retail presence within its four businesses i.e., Vehicle Finance (ABF), Affordable Home loans, Affordable loans against property, SME finance and General Insurance.

Update on Liquidity Position:

- Magma raised new liabilities amounting to over Rs 2150 crore entirely from long-term sources during the Oct- Dec 2019 quarter; Of this, funds raise in form of Term Loans and Debentures constituted approx.

Rs 1300 crore.

- Magma has a surplus in matching of Assets and Liabilities in each time bucket across 0-1 year.

- The Company has adequate liquidity cushion of over Rs 2300 crore at consolidated level as on 31 December2019, against its debt repayments due amounting to just about Rs 425 crore till March 2020.

- With excellent liquidity and a strong pipeline of new long-term funding, we continue to witness softening in cost of incremental borrowings. Magma expects the overall cost of borrowings to start softening from Q1FY21 and onwards.

- Considering the comfortable liquidity position, Magma facilitated a request by an investor for early redemption of Debentures of face value of Rs. 200 crore through repurchase in December 2019.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 06 2020. 10:46 IST