Poonawalla Fincorp

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Poonawalla Fincorp Limited
TypePublic
BSE: 524000, NSE: MAGMA
IndustryNon-banking Financial Company
Founded1988
FounderMr. Mayank Poddar and Mr. Sanjay Chamria
HeadquartersPune,
India
Key people
Adar Poonawalla (Chairman)[1]
ServicesBusiness Loan, Professional Loan, Personal Loan, Home Loan, Loan against Property, Pre-Owned Car Loan, Medical Equipment Loan
RevenueIncrease US$ 303 Million (₹ 2219 crores) (2020)
US$ 135.2 Million (₹ 989.24 crores) (2020)
Increase US$ 168.01 Million (₹ 1229.8 crores) (2020)
Number of employees
9500 (2020)
Websitepoonawallafincorp.com

Poonawalla Fincorp Limited (previously Magma Fincorp) is a Pune based non-banking financial company registered with the Reserve Bank of India as an Asset Finance Company with registered office in Kolkata.[2] The company operates more than 295 [3] branches in 22 states and a union territory and has a strong presence in rural and semi-rural India.[4][5][6]

History[]

Magma Fincorp[]

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.[7] In the year 2000, with the 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.[8] In the same year, the company formed a joint venture with International Tractors Limited (ITL) to enter tractor financing business.[9] In 2008, the company re-branded and renamed itself as Magma Fincorp Limited.[10] In 2009, the company inked a joint venture with German insurer HDI Global to enter general insurance business.[11] 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.[12] 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[13] In April 2018, Magma Fincorp raised Rs.500 Cr investment through QIP[14]

Rebranding as Poonawalla Fincorp[]

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.[15]

Financial results[]

Pune-based asset finance company, Poonawalla Fincorp Limited announced results for Q2FY22. The company’s consolidated profit after tax (PAT) rose 153% YOY to Rs. 96 crore as against Rs. 38 crore in the same quarter last year. PAT was boosted due to lower credit cost of Rs. 35 crore in Q2FY22 against Rs. 134 crore in Q2FY21. Credit cost has declined owing to credit rating upgrade (by CARE to “AA+”) and the repricing of eligible bank borrowings among other factors. Also, Operating expenses were up 32% YOY. AUM showed a flat trend declining by just 2% YOY to Rs. 15,275 crore for Q2FY22. However, on a sequential basis, it was up 6%, indicating a gradual resumption in business activity. The most positive call-out was that the collection efficiency at 99.9% bettered pre-COVID level of 96.5% in the December 2019 quarter. Gross and Net NPAs were down to 4.1% and 2% respectively in Q2FY22 against 5.1% and 3.2% respectively in Q2FY21. [16]

References[]

  1. ^ "Adar Poonawalla appointed as chairman of Magma Fincorp". 31 May 2021.
  2. ^ Fincorp Ltd, Magma. "About Us".
  3. ^ Magma HR team
  4. ^ Mehta, Asit C. (31 March 2011). "Magma Fincorp: Buy for a target of Rs94". IndiaNotes. Retrieved 16 February 2016.
  5. ^ "Magma Fincorp Ltd Q3fy11 Result Update".
  6. ^ "Magma Fincorp Disbursals up 36%, Registers 23% growth in Revenue".
  7. ^ "Magma Fincorp - A stock for rural growth !".
  8. ^ "Information : Magma Fincorp Ltd".
  9. ^ "Magma ties up with International Tractors". The Hindu. Chennai, India. 11 August 2007. Archived from the original on 24 January 2009.
  10. ^ "Magma renames itself, sees 43 percent loan disbursal growth this fiscal".
  11. ^ "Magma inks JV with German Insurer HDI Gerling, to enter General Insurance Business".
  12. ^ "Magma Fincorp Raises $100M From KKR, IFC".
  13. ^ "KKR, Indium, LeapFrog to invest Rs 500 cr in Magma Fincorp". Business Standard India. 30 March 2015.
  14. ^ "Magma Fincorp raises Rs500 crore through QIP". 19 April 2018.
  15. ^ "Magma Fincorp is now Poonawalla Fincorp". @businessline. Retrieved 23 July 2021.
  16. ^ Lele, Abhijit (27 October 2021). "Poonawalla Fincorp consolidated net profit up 151% in Sept quarter". Business Standard India. Retrieved 27 November 2021.
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