Magma Fincorp to raise up to Rs 3,000 crore in the next fiscal

The Board of directors of Magma Fincorp Ltd has approved raising up to Rs 3,000 crore through debt in the next fiscal year.

At its meeting last Saturday, the board of directors approved the issuance of debt securities as non-convertible debt securities for the financial year 2021-22 for an amount of up to Rs 3,000 crore, the company said in a regulatory filing.

The debt securities would be in the nature of secured/unsecured, subordinated debentures, and the capital will be raised through a private placement.

The company said that it will offer the debentures to banks, pension funds, mutual funds and other entities or individuals including but not limited to multi-lateral development organisations, institutional investors, foreign portfolio investors, companies and financial institutions.

The company will decide the coupon rate on the bonds through its management committee of the board of directors.

Magma Fincorp Ltd., the Mumbai based non-banking financial company, operates through more than 295 branches in 22 states and a Union Territory and has a strong presence in rural and semi-rural India.