Poonawalla-led Rising Sun's acquisition of stake in Magma Fincorp gets CCI nod

The Competition Commission of India (CCI) has approved the acquisition of a shareholding in Magma Fincorp Limited by Adar Poonawalla-led Rising Star Holdings Private Ltd (RSHPL) and its promoters Sanjay Chamria and Mayank Poddar. Poonawalla is the CEO of the world's largest vaccine maker Serum Institute of India.

Rising Star had filed a combination notice with the CCI about its stake acquisition in financial services company Magma Fincorp in March.

As part of the deal, RSHPL will acquire a 60 per cent stake in Magma Fincorp, while the non-banking financial company's promoters Chamria and Poddar will acquire a 4.68 per cent shareholding.

"The proposed combination envisages the acquisition of a stake in Magma Fincorp Limited (Magma Fincorp) by Rising Sun Holdings Private Limited (Rising Sun) and Sanjay Chamria and Mayank Poddar," a corporate affairs ministry statement said.

The acquisition will enable RSHPL to achieve higher efficiencies in its existing businesses in the financial lending space as well as expand and diversify its operations in other business areas where Magma Fincorp is present.

Rising Sun is part of Poonawalla's Rising Sun group of companies. It is present in the financial services sector through its subsidiary, Poonawalla Finance Private Limited, which is a systemically important non-deposit taking non-banking finance company (NBFC).

It is a private limited company, primarily engaged in making investments, leasing property on rent and information sharing or business referencing.

Magma Fincorp is also a systemically important non-deposit taking NBFC. It offers a bouquet of financial products, including commercial finance, agri-finance, SME finance, mortgage finance and general insurance, with a focus on the rural and semi-urban sectors.

Also read: Adar Poonawalla's Rising Sun Holdings notifies CCI about Magma Fincorp deal