Board of NBFC Magma Fincorp Ltd has approved the company to acquire its 26% stake held by Joint Venture partner in Magma ITL Finance ltd, company statement revealed in the stock exchange filing.
After this stake acquisition, the Magma ITL Finance will be fully owned by the Magma Fincorp Ltd. The deal amount of the acquisition was not disclosed by the company.
The joint venture partnership which initiated in 2008 between Magma Fincorp and auto company International Tractors Ltd to start a non-deposit taking NBFC Magma ITL Finance in Kolkata will come to an end after this deal of acquisition is completed.
With the distribution of loans amounting Rs 272.92 crore in 2016-17, the joint venture still reported a loss of Rs 29.69 crore.
Kohlberg Kravis Roberts (KKR), LeapFrog Investments, True North, ChrysCapital and International Finance Corporation like equity firms currently backs the Magma Fincorp.
Magma Fincorp net profit stood at Rs 12.7 crore on an operating income of Rs 2,344.5 crore.