Magma Leasing to raise Rs 121.82 cr investment
Kolkata, Jul 7: The board of leading financial services company Magma Leasing Limited (Magma) today approved raising of Rs 121.82 cr through private placement.
While the UK based Cambridge Place Investment Management LLP will invest Rs 108.10 cr, the US based Aeneas Evolution Portfolio will invest another Rs13.72 cr.
The new investment to Magma Leasing is at a premium to the prevailing stock price in a volatile market, Sanjay Chamria, Managing Director, Magma Leasing Limited said.
The investment from CPIM involves the use of a combination of financial instruments like equity shares, Optionally Convertible Preference Shares (OCPS), Non Convertible Preference Shares (NCPS).
The investment from Aeneas Evolution Portfolio is for 762,500 equity shares of the Company at a price of Rs. 180 per share.
''The decision of global investors to invest over Rs. 1 .2 billion through multiple instruments, including equity at a premium to prevailing prices, re-inforces our thought on retail financing market in India, as also it reposes faith in the strategy, business model and the long-term growth prospects of Magma Leasing,'' Chamria said.
''The funds raised will improve the rating and the strength of our balance sheet, augmenting our ability to write higher volume of business and enabling us to maintain a strong growth momentum going forward,'' he said.
The equity share allotment of 26.7 lac shares to CPIM will represent 14.99% of the Company's fully diluted post-placement capital.
The placement with Aeneas Evolution Portfolio will account for 4.28 per cent of the Company's post-placement fully diluted equity capital.
Both transactions are subject to shareholder and other statutory approvals. The transaction is to come up for approval at Magma's Annual General Meeting scheduled for July 31, 2006.