Magma Fincorp to raise up to Rs 3,000 crore in FY22

Magma Fincorp Ltd on Saturday said its board of directors has approved raising up to Rs 3,000 crore through debt in the next fiscal year.

The board of directors at its meeting held on Saturday has approved issuance of debt securities in the nature of non-convertible debt securities for the financial year 2021-22 for an amount up to Rs 3,000 crore, it 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 it will offer the debentures to banks, pension funds, mutual funds and other entities or individuals including but not limited to multi-lateral development organisation, institutional investors, foreign portfolio investors, companies and financial institutions.

Magma Fincorp said it will decide the coupon rate on the bonds through its management committee of the board of directors.

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.Also read: PM Modi to visit poll-bound Assam and West Bengal, what's on his agenda today?

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