Deal Closed | Rising Sun Holdings Private Limited | Acquisition of a Controlling Stake in Magma Fincorp Limited

Adar Poonawalla-led Rising Star Holdings to buy a controlling stake in Magma Fincorp 

The details of the deal are as follows:

Announcement Date: 10-Feb-2021 

Name of Client: Rising Sun Holdings Private Limited 

Acquirer Details: Rising Sun Holdings Private Limited | India  

The company belongs to the Poonawalla group and is owned and controlled by Mr Adar Poonawalla. Mr Adar Poonawalla is the CEO of Serum Institute of India. 

Target Details: Magma Fincorp Limited | India  

Magma Fincorp Limited a Mumbai-based non-deposit taking non-banking finance company (NBFC) is registered with the Reserve Bank of India (RBI). The Company started operations nearly three decades ago and is listed on BSE Limited and the National Stock Exchange in India Limited.  Magma Fincorp a financial conglomerate offers a bouquet of financial products including commercial finance, agri finance, SME finance, mortgage finance and general insurance.  

Deal Description: Rising Sun Holdings Private Limited proposes to acquire a controlling stake in Magma Fincorp Limited, by way of a preferential allotment for an aggregate consideration of INR 3206 crore. Mr Sanjay Chamria and Mr Mayank Poddar, members of the promoter group of Magma Fincorp Limited, also propose to acquire equity shares of Magma Fincorp Limited by way of a preferential allotment for an aggregate consideration of INR 250 crore. Pursuant to the preferential allotment, Rising Sun Holdings will hold a 60% stake in Magma Fincorp Limited and be classified as one of its promoters. Consequently, Rising Sun Holdings (together with Mr Sanjay Chamria and Mr Mayank Poddar, as persons acting in concert) has launched an open offer to the public shareholders of Magma Fincorp Limited in accordance with the applicable SEBI regulations for an aggregate consideration of up to INR 1392 crore. 

Total Consideration: USD 672.8 million 

Team Members: The core transaction team consisted of Arindam Ghosh (Partner), Abhishek Dadoo (Partner), Shashank Patil (Senior Associate), Anvita Mishra (Senior Associate) and Jaidev Mehrotra (Trainee Solicitor) with assistance from the following: 

Competition Law aspects: Anisha Chand (Partner), Swati Bala (Senior Associate) and Vasudhaa Ahuja (Associate) 

NBFC related aspects: Moin Ladha (Partner) and Charu Singh (Associate)   

Insurance Law aspects: Niren Patel (Partner) and Saswat Subasit (Principal Associate) 

Role of Firm: Advising Rising Sun Holdings Private Limited in regard to its acquisition of a controlling stake in Magma Fincorp Limited, by way of a preferential allotment, and the consequent mandatory open offer. 

Other legal advisors if any with names of Lead Lawyers 

1. Economic Law Practice is acting as the tax and transaction advisor to Rising Sun Holdings. 
2. Wadia Ghandy & Co is acting as legal advisor to Magma Fincorp to Magma Fincorp. 
3. Vinod Kothari & Co is acting as corporate law advisor to Magma Fincorp.