Shares on non-banking finance company Magma Fincorp touched a 52-week high of Rs 136.40 in early trade on March 10 after the company's shareholders approved the company's fundraising plan.
The company plans to raise up to Rs 3,456 crore by issuing preference equity shares to Rising Sun, a company controlled by Adar Poonawalla and two members of the promoter group.
The company' shareholders at the extraordinary general meeting approved with requisite majority, preferential allotment of 49,37,14,286 equity shares of face value Rs 2 each of the company at an issue price of Rs 70 per equity share aggregating up to Rs 3,456 crore, to Rising Sun Holdings Private Limited and existing Promoters, Sanjay Chamria and Mayank Poddar, company said in its release.
The said preferential allotment would result in Rising Sun, a company controlled by Adar Poonawalla, acquiring a controlling stake of 60 percent in Magma Fincorp.
The transaction is subject to necessary regulatory/statutory approvals, which are under process.
Following the preferential issue, Rising Sun Holdings would be classified as “promoter” of Magma Fincorp.
Magma Fincorp Limited and its subsidiaries shall be renamed and rebranded “Poonawalla Fincorp”, subject to regulatory approvals, it added.
At 09:18 hrs, Magma Fincorp was quoting at Rs 136.40, up Rs 6.45, or 4.96 percent on the BSE.