The non-banking finance company was incorporated in the year 1978 as the name of ARM Group Enterprises Private Limited. The company’s business engagement is in asset-backed financing, mortgage financing, distribution of general insurance product, financing to SME. Due to some business emergencies, the company is going to issue NCD (Non-convertible debenture) in this month. The article contains Magma Fincorp NCD Review with issue details, company financials, and summary.
About Magma Fincorp Limited NCD Issue Details
- The issue opens on- Apr 8, 2019
- The issue close on- May 8, 2019
- Issue Type: Secured, Redeemable, Non-convertible debenture
- Face value: Rs. 1000 Per NCD
- Issue size: NCD’s of Rs. 200.00 Cr
- Issue size: Rs. 500.00 Crore
- Issue price: Rs. 1000 Per NCD
- Market lot: 1 NCD
- Listing At: BSE
- Minimum order quantity: 10 NCD
- DRHP: Click here
Purpose of Issuing NCD
- Basic purposes of issuing the NCD are onward lending, financing, for payment or repayment of interest and principal of existing borrowings.
- General objectives like enhancing brand image, advertising also come under it.
- The company wants to raise its debt fund.
About Magma Fincorp
- The core business of the company includes asset-backed finance, small and medium enterprises finance, mortgage finance, general insurance.
- They are engaged in the financing of vehicles and construction equipment, which the company divides into six categories such as cars, commercial vehicles, construction equipment, tractors, pre-owned vehicles and auto lease. Their customers include first time buyers, farmers, small businesses and self-employed individuals. Total AUM in the
asset backedfinance business was as follows Rs. 10,87,716.36 lakhs as of March 31, 2018, and ₹11,64,445.09 lakhs as of September 30, 2018.
- The company offers housing loans, loans against property and construction finance loans only for real estate developers. Total AUM amount in the mortgage finance business was ₹2,73,446.70 lakhs as of March 31, 2018, and ₹2,81,730.48 lakhs as of September 30,
- We provide loans primarily to small and
medium sizemanufacturers, distributors, dealers and service providers engaged in various industries. These are collateral-free loans taken by SMEs for the purpose of working capital management, purchase of machinery and business expansion. Total AUM in the SME finance business was ₹1,94,310.83 lakhs as of March 31, 2018and ₹2,16,122.10 lakhs as of September 30, 2018.
- The company
offersoffer a range of general insurance products that include motor, health, liability, fire, engineering, marine and other insurance products. We offer a range of general insurance products that include motor, health, liability, fire, engineering, marine and other insurance products.
Products of the Company
- Asset Backed Finance
- Mortgage Finance
- Small and Medium Enterprise (SME) Finance
- General Insurance
- The first one is the Comprehensive understanding of rural as well as the semi-urban markets.
- The extensive distribution network of the company.
- Their Robust risk management framework.
- Effective and efficient use of advanced technology.
- Experienced management team along with strong corporate governance standards.
Company Business Strategies
- Focus on the affordable housing financing segment is the important strategy.
- Technology initiatives to strengthen the business processes and ensure effective and efficient risk management.
- The next strategy is to Continue to undertake cross-selling initiatives to leverage in-house synergies.
- Diversify and grow their product portfolio.
Address: Magma House, 24 Park Street,
at Kolkata 700 016, West Bengal, India.
Chairman Emeritus and Whole Time Director: Mayank Poddar
Chairman and Independent Director: Narayan K. Seshadri
Vice-chairman and Managing Director: Sanjay Chamria
Independent Director: V. K. Viswanathan
Independent Director: Satya Brata Ganguly
Non-executive Director: Madhumita Dutta-Sen
Magma Fincorp NCD Review
The above statement shows the profit-loss of the company. It reflects the previous five years statement, there we can see that the company was still in the development stage. In the FY17, the profit level was not so good. As per the financial statement from DRHP of the company, its EPS (earnings per share) was 10.77. Its industry P/E was 39.82. Price/Book value was 1.42. As per the data, Magma Fincorp NCD Review carries NEUTRAL view.