Magma Fincorp spikes 10%, hits 52-week high as Adar Poonawalla's Rising Sun eyes majority stake

SII CEO Adar Poonawalla (File Image: Twitter)

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26 Aug, 2025 12:21

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Magma Fincorp share price jumped over 9 percent in the morning session on February 11 on news that Adar Poonawalla-backed firm will acquire majority stake in the company.

Rising Sun Holdings, a company controlled in personal capacity by Serum Institute of India CEO Adar Poonawalla, announced a transaction on February 10 to acquire a controlling stake in Magma Fincorp (MFL), a non-banking financial company (NBFC).

The deal will be carried out via a preferential issue of Magma Fincorp's equity shares worth Rs 3,456 crore. The deal also includes an open offer as per SEBI norms.

Also Read: Adar Poonawalla-backed firm to acquire majority stake in Magma Fincorp for Rs 3,456 crore

According to an official statement, the deal “ is subject to shareholders’ and other regulatory approvals and represents 64.68 percent of MFL’s enhanced equity share capital post the issue. Based on current shareholding, Rising Sun Holding would hold 60 percent stake in the entity post issuance and the existing promoter group stake would get reduced to 13.3 percent post issuance. The net worth of MFL shall increase to over Rs 6,300 crore post the issuance.”

The stock was trading at Rs 93.40, up Rs 8.45, or 9.95 percent. It has touched a 52-week high of Rs 93.40. It has touched an intraday high of Rs 93.40 and an intraday low of Rs 93.40.

There were pending buy orders of 1,379,070 shares, with no sellers available.

Following the preferential issue, Rising Sun Holdings would be classified as the promoter of MFL. MFL and its subsidiaries shall be renamed and rebranded under the brand name “Poonawalla Finance”, subject to regulatory approvals.

Subsequent to the completion of the preferential allotment, the existing financial services business of Poonawalla Finance is proposed to be consolidated into MFL subject to compliance with extant regulations.

Deloitte Touche Tohmatsu India LLP is acting as the exclusive financial advisor to MFL, Wadia Ghandy & Co is acting as legal advisor, and Vinod Kothari & Co is acting Corporate law advisors to the company.