INSUBCONTINENT EXCLUSIVE:
MUMBAI: Private equity investor Kohlberg Kravis Roberts and Co (KKR) exited Kolkata-based nonbanking finance company Magma Fincorp through a
block deal.
KKR had sold a large part in April when Magma Fincorp raised funds through a QIP
KKR has made two-times return on investment in five years after entering the company in 2011
KKR owned stake in the company through two funds, KKR Mauritius Direct Investments and Zend Mauritius and sold a large chunk of around 10
per cent during QIP this year.
On May 10, KKR sold the remaining stake through block deals in the market
In 2011, KKR had bought 14.95 per cent in Magma Fincorp for Rs 236.31 crore at Rs 88 a share
In 2015, KKR infused another Rs 80 crore to maintain its shareholding paying Rs 108 a share
Amansa Holdings, Goldman Sachs, ICICI Prudential Life Insurance, HDFC Standard Life Insurance and DB International Asia bought stakes in
Now, True North is the largest investor with 10.49 per cent followed by International Finance Corporation with 8.54 per cent
In April, the company raised Rs 500 crore at a price of Rs 155 per equity share through QIP
The company operates through 305 branches especially in rural and semi-rural areas and manages a loan book of Rs 15,555 crore.
Magma reduced
its average ticket size to Rs 12-13 lakh, catering mainly to the affordable housing segment and now operates in ticket size of Rs 5 lakh to
Rs 30 lakh with a maximum of up to Rs 50 lakh in home loans segment.
