Poonawalla Fincorp
Poonawalla Fincorp Limited (earlier Magma Fincorp) is a Mumbai based non-banking financial company registered with the Reserve Bank of India as an Asset Finance Company with registered office in Kolkata.[3] The company operates more than 295 [4] branches in 22 states and a union territory and has a strong presence in rural and semi-rural India.[5][6][7]
 | |
| Traded as | BSE: 524000, NSE: MAGMA |
|---|---|
| Industry | Non-banking Financial Company |
| Founded | 1988 |
| Founder(s) | Mr. Mayank Poddar and Mr. Sanjay Chamria |
| Headquarters | Mumbai, |
Key people | Adar Poonawalla, Chairman,[1] Abhay Bhutada, Managing Director[2] |
| Services | Car loans/lease, vehicle loans, construction equipment loans, refinance, SME loans, tractor loans, housing loans, insurance |
| Revenue |  US$ 303 Million (₹ 2219 crores) (2020) |
| US$ 135.2 Million (₹ 989.24 crores) (2020) | |
| US$ 168.01 Million (₹ 1229.8 crores) (2020) | |
Number of employees | 9500 (2020) |
| Website | poonawallafincorp |
HistoryEdit
Magma FincorpEdit
The company was incorporated in 1988 by Mr. Mayank Poddar and Mr. Sanjay Chamria as Magma Leasing Limited. The company commenced operation in 1989. In 1996, the company entered retail financing business for vehicles and construction equipment.[8] In the year 2000, with the athe acquisition of Consortium Finance Ltd, the company expanded its network across Northern India. In 2007, Shrachi Infrastructure Finance merged with the company increasing the company's footprint in southern and western India.[9] In the same year, the company formed a joint venture with International Tractors Limited (ITL) to enter tractor financing business.[10] In 2008, the company re-branded and renamed itself as Magma Fincorp Limited.[11] In 2009, the company inked a joint venture with German insurer HDI Global to enter general insurance business.[12] The company commenced operations in 2012. The same year, the company picked up 7% stake in the newly formed Experian Credit Information Company of India Pvt Ltd, the Indian arm of the global credit information services company. In 2011, Kohlberg Kravis Roberts – a large global PE firm and International Finance Corporation, an arm of the World Bank Group invested about $100 mn in the company.[13] In 2012, the company acquired GE Money Housing Finance and GE Money Financial Services. In 2016 Mr. Mayank Poddar stepped down as the chairman. In March 2015, Magma Fincorp received Rs.500 Cr investment from KKR, Indium V and LeapFrog Investments[14] In April 2018, Magma Fincorp raised Rs.500 Cr investment through QIP[15]
Rebranding as Poonawalla FincorpEdit
The Company announced a major financial investment by Rising Sun Holdings, a Adar Poonawalla controlled company in February 2021. Magma HDI announced capital infusion in March 2021 by ICICI Ventures, Cyza Chem and Morgan Stanley. Subsequent to the investment by Rising Sun Holdings, the name of the company was changed from Magma Fincorp to Poonawalla Fincorp on 22 July 2021.[16]
Financial resultsEdit
Mumbai-based asset finance company, Magma Fincorp Limited announced results for Q2FY21. The company’s profit after tax (PAT) rose 29% yoy to Rs38cr as against Rs30cr in the same quarter last year. Profits were driven by a reduction in the cost of funds and tight control in operating expenses. The Company has made an additional provision of Rs90cr in Q2 FY21 for COVID related stress on the portfolio. The total additional provision now stands at Rs 238cr being 1.5% of overall Assets Under Management (AUM). The AUM was flat at Rs15,571cr, on the back of the pandemic induced lockdown. The company has seen improvement in collections after the end of the moratorium in August, and recorded collection efficiency of 85% in September and 90% in October 2020. The Company expects 70 bps reduction in its operating expenses during the year, of which 40 bps is sustainable due to structural changes undertaken, whereas 30 bps may come back with a return in normalcy, which is expected by Q4FY21. [17][18]
ReferencesEdit
- ↑ https://www.livemint.com/companies/news/adar-poonawalla-appointed-as-chairman-of-magma-fincorp-11622467050826.html
- ↑ https://www.timesnownews.com/business-economy/companies/article/magma-fincorp-appoints-adar-poonawalla-as-chairman-announces-leadership-rejig/764204
- ↑ Fincorp Ltd, Magma. "About Us".
- ↑ Magma HR team
- ↑ Mehta, Asit C. (31 March 2011). "Magma Fincorp: Buy for a target of Rs94". IndiaNotes. Retrieved 16 February 2016.
- ↑ "Magma Fincorp Ltd Q3fy11 Result Update".
- ↑ "Magma Fincorp Disbursals up 36%, Registers 23% growth in Revenue".
- ↑ "Magma Fincorp - A stock for rural growth !".
- ↑ "Information : Magma Fincorp Ltd".
- ↑ "Magma ties up with International Tractors". The Hindu. Chennai, India. 11 August 2007. Archived from the original on 24 January 2009.
- ↑ "Magma renames itself, sees 43 percent loan disbursal growth this fiscal".
- ↑ "Magma inks JV with German Insurer HDI Gerling, to enter General Insurance Business".
- ↑ "Magma Fincorp Raises $100M From KKR, IFC".
- ↑ "KKR, Indium, LeapFrog to invest Rs 500 cr in Magma Fincorp".
- ↑ "Magma Fincorp raises Rs500 crore through QIP".
- ↑ Bureau, Our. "Magma Fincorp is now Poonawalla Fincorp". @businessline. Retrieved 23 July 2021.
- ↑ "Magma Fincorp Q2FY21 PAT up 29% yoy at Rs38cr".
- ↑ "Magma Fincorp Profit and Loss Reports". The Economic Times. Retrieved 6 June 2021.