Serum Institute will get a lot of cash with the success of making other Poonawala vaccine. It will be used in new acquisitions.
Rising Sun Holding, a company controlled by Adar Poonawala, head of Serum Institute of India, is going to buy a majority stake in non-banking financial company Magma Fincorp. Rising Sun will invest new capital in it. After this, she will make an open offer. Rising Sun and Magma Fincorp announced the deal on Wednesday. He said that Magma will issue a preferential share of Rs 3456 crore of Fincorp. After the issue, this preference allocation will be 64.68 per cent of Magma’s increased capital.
Poonawala’s 60 percent stake in the company
Following the current shareholding pattern, Rising Sun Holding will hold 60 per cent stake in it. The capital of the existing shareholders will be reduced to 13.3 per cent. After the free issue is brought out, Rising Sun Holdings Limited will become the promoter of Magma Finance and will be named Poonawala Finance.
Poonawala Finance will be the new name of the company
The deal will increase Magma Fincorp’s net worth to Rs 6,300 crore. Magma Fincorp Limited Vice-Chairman and Managing Director Sanjay Chamadia said that the firm has ten branches. It is spread over 22 states and has ten thousand employees. With the proposed capital infusion, the company will improve productivity and operating matrix.
The current promoters will spend Rs 250 crore and Poonawala will bring in about Rs 3,200 crore as finance capital. Poonawala Finance is a finance company owned by the Poonawala family. It owns and controls the Serum Institute of India. The Serum Institute of India has produced the Covid-19 vaccine covishield.
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