Magma Fincorp Limited NCD (Magma Fincorp NCD April 2019) Detail

Apr 8, 2019 - May 8, 2019

Incorporated in 1978, Magma Fincorp Ltd was a non-banking finance company (NBFC). Later in 1989, it started providing financial services as well. The company finances based on the asset for new and already owned tractors, utility vehicles, commercial vehicles and cars. Further, the company also provides mortgage financing, general insurance products, and SMEs financing services.

As on 30th Sept 2018, the company had nearly 11.00 lakh active customers and 306 branches across 21 states in India.

The core business verticles of the company are:

1. Asset-Backed Finance: It is divided into six categories including auto lease, cars, commercial vehicles, construction equipment, pre-owned vehicles and tractors.

2. Mortgage Finance: It offers three products which are Housing Loans, Loans Against Property (LAP), and Construction Finance Loans for Real Estate Developers.

3. Small and Medium Enterprise (SME) Finance: This category includes the customers whom company provides loan such as small and medium-sized dealers, distributors, shop owners, traders and manufacturers.

4. General Insurance: This segment has 7 products to fulfil the general insurance needs of businesses. The product list includes Motor Insurance, Health & Personal Accident Insurance, Liability Insurance, Fire Insurance, Engineering Insurance, Marine Insurance and Miscellaneous Insurance.

Future Aims of the company are:

1. Enhance the affordable housing financing segment
2. Ensure effective risk management
3. Make business processes improved with Technology initiatives
4. Keep on undertaking cross-selling initiatives
5. Improve product portfolio

The competitive strength of the company are:

1. Rural and semi-urban markets understanding
2. Wide distribution network
3. The strong risk management framework
4. Integrated technology system

Magma Fincorp NCD April 2019 Detail

Issue Open	Apr 8, 2019 - May 8, 2019
Security Name	Magma Fincorp Limited
Security Type	Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)	Rs 200.00 Crores
Issue Size (Shelf)	Rs 500.00 Crores
Issue Price	Rs 1000 per NCD
Face Value	Rs 1000 each NCD
Minimum Lot size	10 NCD
Market Lot	1 NCD
Listing At	BSE, NSE
Credit Rating	BWR AA (Outlook: Stable) by Brickworks Ratings India Private Limited and ACUITE AA/Stable by Acuité Ratings & Research Limited
Tenor	3 years/ 5 years/ 10 years
Series	Series 1 to Series 7
Payment Frequency	Monthly, Annual and Cumulative
Basis of Allotment	Priority Basis

NCD Allocation Ratio

NCD's allocated in each investor category:

Category	NCD's Allocated
Category 1 (QIB)	20%
Category 2 (NII)	20%
Category 3 (HNI)	30%
Category 4 (RII)	30%

NCD's Offered

NCD's offered in each investor category:

Category	NCD's Reserved
Category 1 (QIB)	400,000
Category 2 (NII)	400,000
Category 3 (HNI)	600,000
Category 4 (RII)	600,000
Total NCD's	2,000,000

Coupon Rates

Coupon Rates for Eash Series

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7
Frequency of Interest Payment	Annually	NA	Monthly	Annually	NA	Monthly	Annually
Tenor	3 year	3 year	5 year	5 year	5 year	10 year	10 year
Coupon Rate (Retail) For Category I & II/ for III & IV	10.25%	NA	10.04%	10.50%	NA	10.27%	10.75%
Amount on Maturity For Category I & II/ for III & IV	₹1,000	₹1,340.10	₹1,000	₹1,000	₹1,648.19	₹1,000	₹1,000

NCD Rating Detail

The NCDs proposed to be issued under this Issue have been rated BWR AA (Outlook: Stable)' by Brickworks Ratings India Private Limited ("Brickworks") for an amount of up to ₹ 1,00,000 lakhs vide its letter dated December 21, 2018 and ACUITE AA/Stable by Acuité Ratings & Research Limited (erstwhile SMERA Ratings Limited) for an amount of up to ₹ 1,00,000 lakhs vide its letter dated December 28, 2018. The rating of the NCDs by Brickworks and Acuité indicate that instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

Company Promoters

Here are the promoters of the company:

1. Celica Developers Private Limited,
2. Microfirm Capital Private Limited,
3. Ashita Poddar,
4. Kalpana Poddar,
5. Mansi Poddar and
6. Shaili Poddar

Objects of the Issue:

The company proposes to utilise the funds towards funding the following objects:

1. For the purpose of onward lending, financing and for repayment/prepayment of interest and principal of the
existing borrowings of the Company; and
2. General corporate purposes.

Magma Fincorp NCD April 2019 Prospectus

› Red Herring Prospectus
› Draft Prospectus (Shelf)

Magma Fincorp NCD April 2019 Rating

4.1

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Company Contact Information

Magma Fincorp Limited
Magma House,
24 Park Street, Kolkata 700 016,
West Bengal, India

Phone: +91 33 4401 7350/7200
Email: mflncdpublicissue@magma.co.in
Website: https://magma.co.in/

Magma Fincorp NCD April 2019 Registrar

Karvy Computershare Private Limited
   Karvy Registry House, 8-2-596, St. No. 1,
   Banjara Hills, Hyderabad - 500 034
   Andhra Pradesh, India

Phone: +91-40-23312454
Email: einward.ris@karvy.com
Website: https://karisma.karvy.com/

Magma Fincorp NCD April 2019 Lead Manager(s)

Lead Manager Reports

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