Poonawalla Fincorp Ltd
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BSE Code:
524000
NSE Code:
MAGMA
Business Profile
Business Profile
Magma Shrachi Finance (MAGMASHFI), earlier known as Magma Leasing, is a non banking financial company (NBFC) headquartered in Kolkata. It was incorporated on Dec. 18, 1978, converted into a public limited company on Oct. 30, 1980, and got its present name on June 19, 2007.
The company provides products and services to individual and corporate customers. Its fund-based product portfolio includes commercial vehicle financing, cars and multi-utility vehicle funding, and financing of construction equipment. It distributes third party products like personal loans aimed at its existing customer base. These products offer cross-sell opportunities, address customer needs, and help position the company as a one-stop shop in the retail financing market. Under the new RBI guidelines, the company has been classified as a systemically important asset financing company, which allows it access to a higher percentage of bank funding compared to other categories of NBFCs.
In FY07, the merger with Shrachi Infrastructure Finance has increased the company`s presence across India with 154 locations enhancing deep penetration into its core semi-urban and rural markets. The company has tied up with Maruti Udyog as an approved financier giving it access to Maruti`s extensive dealer network across India for disbursing its products. Viper Estates and Investments is a subsidiary of the company.
The registered office of the company is located at Magma House, 24 Park Street, Kolkota-700016.
Financials
Magma Shrachi Finance registered a profit of Rs 163.11 million for the quarter ended September 2007.
It recorded a net sales of Rs 883.95 million for the quarter.
Total income was Rs 987.96 million for the quarter ended September 2007.
The earnings per share (EPS) of the company stood at Rs 6.52 for the quarter ended September 2007.
Recent Developments
10-AUG-07
Magma Shrachi Finance stepped into an agreement with International Tractors (ITL), a manufacturer of Sonalika Brand of Tractors, for the purpose of setting up a joint venture (JV) company for the sole purpose of financing tractors manufactured by them under the brand name `Sonalika`.
The proposed joint venture will have a paid up share capital of Rs 250 million. Magma Shrachi Finance will hold 74% of the share capital and the remaining 26% will be held by ITL.
21-JUN-07
Magma Leasing announced that the name of the company has been changed from the present one to `Magma Shrachi Finance` with effect from Jun. 19, 2007 pursuant to the issue of a fresh certificate of incorporation dated Jun. 19, 2007 by the Registrar of Companies-West Bengal consequent upon change of name of the company.
Future Plans
Magma, currently, has negligible presence in southern and western parts of the country. The company plans to expand to these regions by opening up of new offices.
Magma Leasing and Shrachi Infrastructure finance have decided to merge to create a new financial services company in the name of `Magma Shrachi Finance`. The merger will have retrospective effect from Apr. 1, subject to regulatory approvals. Magma Shrachi plans to grow its business aggressively and diversify its product portfolio with an aim to become the largest retail financing outfit in India by 2007.