Poonawalla-backed firm to pick majority in Magma Fincorp for $474m

Poonawalla-backed firm to pick majority in Magma Fincorp for $474m

Serum Institute of India CEO Adar Poonawalla. Photo: Abhijit Bhatlekar/Mint

Rising Sun Holdings (RSH) Pvt. Ltd, a company controlled by billionaire Adar Poonawalla, has agreed to buy a majority stake in Magma Fincorp Ltd in a deal valued at 3,456 crore.

The deal will be executed through issuance of preferential shares by Magma Fincorp that will result in RSH taking a 60% stake in the non-banking financial company. The deal has triggered an open offer under the Securities and Exchange Board of India’s takeover code to buy up to 26% stake from public shareholders.

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