- NCDs of a Face Value of Rs.1,000 each
- The Tranche I Issue includes a Base issue Size for an amount of Rs. 200 crores (“Base Issue Size”) with an option to retain oversubscription of up to Rs. 300 crores aggregating up to Rs.500 crores (“Tranche I Issue”)
- The Tranche I Issue is rated as BWR AA / Stable (pronounced as BWR double A) (Outlook: Stable) by Brickworks Ratings India Private Limited and ACUITE AA/ Stable by Acuité Rating & Research Limited erstwhile Known as SMERA Ratings & Research Limited
- The Tranche I Issue offers effective annualized yield up to 10.76% p.a. on redemption.
- The Tranche I Issue opens on April 08, 2019 and closes on May 08, 2019 with an option for early closure or extension.
- The NCDs offered through the Tranche I Prospectus are proposed to be listed on the BSE & NSE. BSE shall be the Designated Stock Exchange for the Tranche I Issue.
MUMBAI, (GNI): Magma Fincorp Limited, a non-banking finance company, is coming out with a Public Issue of Secured Redeemable Non-Convertible Debentures (“NCDs”) of the face value of Rs. 1,000 each. The Tranche I Issue includes a Base issue Size for an amount of Rs. 200 crores with an option to retain oversubscription up to Rs. 300 crores aggregating up to Rs.500 crores. The Tranche I Issue offers various options for subscription and yield up to 10.76% (per annum) on Redemption. The Tranche I Issue opens on April 08, 2019 andcloses on May 08, 2019, with an option of early closure or extension.
The NCDs proposed to be issued under this Tranche I Issue are rated as BWR AA / Stable (pronounced as BWR Double A) (Outlook: Stable) by Brickworks Ratings India Private Limited and ACUITE AA/ Stable by Acuite Rating & Research Limited erstwhile known as SMERA Ratings & Research Limited. Such instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
These NCDs, bearing a fixed rate of interest, are being offered under seven different Series.
The terms of each series of NCDs, offered under Tranche I Issue are set out below:
*The Company would allot the Series I NCDs, as specified in the Tranche I Prospectus to all valid Applications, wherein the Applicants have not indicated their choice of the relevant Series of NCDs.
Net proceeds of the issue will be utilized for the purpose ofonward lending, financing and for repayment/prepayment of interest and principal of the existing borrowings of the Company; and for general corporate purpose.
The NCDs offered through the Tranche I Prospectus are proposed to be listed on the BSE & NSE. BSE shall be the Designated Stock Exchange for the Tranche I Issue.
The Lead Managers to the Issue are Edelweiss Financial Services Limited and A. K. Capital Services Limited.
Catalyst Trusteeship Limited(formerly known as GDA Trusteeship Limited) is the Debenture Trustee and Karvy Fintech Private Limited(formerly known as KCPL Advisory Services Private Limited) is the Registrar to the Issue.
About Magma Fincorp Limited a non-deposit taking non-banking finance company. The Company commenced its financing business in 1989, and have almost three decades of experience in the financial sector. The company engaged in providing asset backed financing for new and pre-owned auto and utility vehicles, tractors, cars and commercial vehicles, mortgage financing, financing to SMEs and distribution of general insurance products. The Company’s customers include first-time buyers of vehicles, self-employed and non- professional individuals, small and medium entrepreneurs and customers with informal income and limited banking and credit history. As of December 31, 2018, the company had around 12.00 lakh active customers, of which approximately 4 lakh active customers were in the company’s financing businesses and 8 lakh active customers in the company’s general insurance business. The company have a widespread branch network that forms an integral part of the company’s ability to service the customers. As of December 31, 2018, Company had a presence across 21 States in India through 309 branches.
Allotment in the public issue of debt securities will be made on the basis of date of upload of each application into the electronic book of the stock exchanges. However, on the date of oversubscription, the allotments will be made to the applicants on proportionate basis. For further details refer section titled “Issue Related Information” on page 31 of the Tranche I Prospectus dated March 29, 2019.
The Tranche I Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that the Tranche I Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the Company or the Management Committee of the Board, subject to necessary approvals. In the event of an early closure or extension of the Tranche I Issue; the Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation on or before such earlier or extended date of Tranche I Issue closure. Applications Forms for the Tranche I Issue will be accepted only from 10:00 a.m. to 5:00 p.m. or such extended time as may be permitted by BSE and NSE, on Working Days during the Issue Period. On the Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3:00 p.m. and uploaded until 5:00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE and NSE.
For further details please refer Shelf Prospectus and Tranche I Prospectus both dated March 29, 2019. The Shelf Prospectus and Tranche I Prospectus are available on the Company’s website www.magma.co.in, on the website of the stock exchangeswww.nseindia.com, www.bseindia.com, on the website of SEBI atwww.sebi.gov.in and the respective web sites of the lead managers atwww.edelweissfin.com andwww.akgroup.co.in.