Magma Fincorp hits 5% upper circuit for 2nd straight day
Shares of Magma Fincorp were touched 5 per cent upper circuit for the second straight day, up 5 per cent at Rs 143.05 on the BSE on Tuesday. The company has appointed Adar Poonawala as its chairman as part of a management overhaul following the Poonawala-controlled Rising Sun Holdings acquiring a controlling stake in it.
The stock of Fincorp was trading nearly to its 52-week high level of Rs 147.90, hit on May 10, 2021. Till 02:16 pm, a combined 1.01 million shares had been traded and there were pending buy orders for 2.9 million shares on the NSE and BSE.
The non-banking finance company is now a subsidiary of Rising Sun Holdings Private Limited (owned and controlled by Adar Poonawalla), subsequent to equity raise of Rs 3,456 crore on May 6, 2021. The process for the rebranding of Magma Fincorp is underway and the Company would take on the Poonawalla brand upon receipt of all requisite approvals (RBI approval for name change has been received).
The management said as the second wave of Covid-19 is subsiding, the new management is expected to drive business acceleration. The rebranding of the company as a Poonawalla Group firm is underway. The company’s cost of funds is expected to fall in line with the industry best, along with resultant improvement in credit rating and progress towards resilience under the Poonawalla brand, the management said