HSL Mobile App Magma Fincorp Limited NCD
Magma Fincorp Limited is a no-banking finance company, incorporated on December 18, 1978, as ARM Group Enterprises Private Limited. Subsequently, the company was converted into a public limited company in 1980 and the name of the Company was subsequently changed to Magma Leasing Limited in 1993. In 2008, the Company name was changed to Magma Fincorp Limited. It commenced financing business in 1989, and has almost three decades of experience in such business.
The company is 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. Its customers include first-time buyers of vehicles, self-employed and non-professional individuals, small and medium entrepreneurs and customers with informal income, to name a few.
Issue Details
| Issuer | Magma Fincorp Limited |
| Issue Size | Public Issue of secured, redeemable non‐convertible debentures of face value of ₹ 1,000 each, for an amount of ₹ 20,000 lakhs (“Base Issue Size”) with an option to retain oversubscription up to ₹ 30,000 lakhs aggregating up to Tranche I Issue Size of ₹ 50,000 lakhs and is being offered by way of this Tranche I Prospectus which should be read together with the Shelf Prospectus dated March 29, 2019 (“Shelf Prospectus”) in accordance with the terms and conditions set out in this Tranche I Prospectus and the Shelf Prospectus |
| Issue |
Public Issue |
| Credit Ratings |
The NCDs proposed to be issued under this Issue have been rated ‘BWR AA (pronounced as BWR Double A) (Outlook: Stable)’ by Brickworks for an amount of up to ₹ 1,00,000 lakhs vide its letter dated December 21, 2018 (revalidated on March 28, 2019) and ‘ACUITE AA/Stable’ by Acuité for an amount of up to ₹ 1,00,000 lakhs vide its letter dated December 28, 2018 (revalidated on March 28, 2019). 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. The ratings provided by Brickworks and/or Acuité may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings by Brickworks and Acuité are not a recommendation to buy, sell or hold securities and investors should take their own decisions. Please refer to Annexures A and B of the Shelf Prospectus for the rationale for the above ratings. |
| Issue opens |
Monday, 08th April 2019 |
| Issue closes | Wednesday, 8th May 2019 (with an option to close early by prior intimation) |
| Issue Price | Rs. 1,000 per NCD |
| Minimum Application | Rs. 10,000/- (10 NCDs) across all Series and in multiples of 1 (one) NCD of Rs 1,000/- each thereafter |
| Listing | BSE |
SPECIFIC TERMS FOR EACH SERIES OF NCDs
| Series | I | II | III | IV | V | VI | VII |
| Frequency of Interest Payment | Annual | NA | Monthly | Annual | NA | Monthly | Annual |
| Tenor | 3 year | 3 year | 5 year | 5 year | 5 year | 10 year | 10 year |
| Coupon (%) for all Investor categories* | 10.25% | NA | 10.04% | 10.50% | NA | 10.27% | 10.75% |
| Effective Yield (per annum) (Approx.) for all Investor categories* | 10.24% | 10.24% | 10.50% | 10.49% | 10.50% | 10.76% | 10.74% |
| Redemption amount (₹ per NCD) | ₹1,000 | ₹1,340.10 | ₹1,000 | ₹1,000 | ₹1,648.19 | ₹1,000 | ₹1,000 |
| Put and call option | NA | ||||||
| Redemption Date (Years from the Deemed Date of Allotment) | 3 years | 3 years | 5 years | 5 years | 5 years | 10 years | 10 years |
| Minimum Application | ₹ 10,000 (10 NCDs) across all Series collectively | ||||||
| In multiples of thereafter | ₹ 1,000 (1 NCD) | ||||||
| Face Value / Issue Price (₹ / NCD) | ₹ 1,000 | ||||||
| Mode of Interest Payment | Through various options available | ||||||
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