Share of Magma Fincorp hit 5% upper circuit at Rs 143.05 on BSE after the company announced a series of leadership changes, including the appointment of Adar Poonawalla as the chairman of the company.The non-banking finance company's (NBFC's) board also appointed Abhay Bhutada as its managing director. The new appointments follow Poonawalla-led Rising Sun Holdings' acquiring a controlling stake in Magma Fincorp through an equity infusion of Rs 3,456 crore earlier this month.
Poonawalla is also the chief executive officer of Pune-based Serum Institute of India, the world's largest vaccine manufacturer.
The stock ended 4.99 per cent higher at Rs 143.05 against the previous close of Rs 136.25. Market cap of the firm rose to Rs 10,919.45 crore.It has gained 921 per cent in the last 12 months and risen 256 per cent since the beginning of this year.
The share stands higher than 50 day, 100 day, and 200 day moving averages and lower than 5 day, 10 day and 20 day moving averages.
For the fiscal year 2021, revenue from operations declined 8 per cent to Rs 2,352.48 crore from Rs 2,562.87 crore in the previous year. The company reported a net loss of Rs 559 crore in financial year 2020-21 compared to a net profit of Rs 27 crore in the previous year.
In the last quarter of FY21, it reported a widening of its consolidated net loss to Rs 647.72. The company had posted a net loss of Rs 355.08 crore during Q4FY20.
Revenue from operations declined 6 per cent to Rs 572.84 crore in the March-ended quarter against Rs 610.32 crore a year ago.
"The company has exited FY21 with a very strong balance sheet and with further capital infusion of Rs 3,456 crore, is adequately capitalised to usher in a period of growth and superior risk-return ratios and RoA and RoE," it said.
Magma Fincorp also said that Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as the company's CEO from the first week of July. He will also be the Group CEO of Poonawalla Group's financial services business.
"Deshwal is currently a business head at ICICI Bank, responsible for its fast-growing services sector, including new age businesses. He is also responsible for driving the liability strategy for the corporate ecosystem at the bank," the company said in a release.
"These changes reflect the company's transition into the next phase of growth and the ongoing commitment to achieving the highest standards of corporate governance," it added.
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