Magma Fincorp Raises Rs 350 Crore Via Private Placement Of NCDs
Indian five hundred rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Magma Fincorp Raises Rs 350 Crore Via Private Placement Of NCDs

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Magma Fincorp Ltd. on Friday said it has raised Rs 350 crore through private placement of bonds to Netherlands Development Finance Company (FMO) to support the non-banking finance company’s ongoing growth plans.

This investment by FMO is under Voluntary Retention Route for investment in the country's debt by foreign portfolio investment.

"Proceeds of the NCDs (non-convertible debentures) will be utilised for ongoing business operations including expansion and growth of its micro and small and medium enterprise loan portfolio," the company said in a statement.

Magma Fincorp, which focuses on the rural and semi-urban sector manages a loan book of Rs 16,463 crore and has a customer base of over 2.4 million.

As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.

On Friday, Magma Fincorp shares rose 4.94 percent to Rs 55.25 apiece on the NSE while the benchmark Nifty 50 gained 0.96 percent to end the day at 12,086.70 points.

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