Retail financier Magma Fincorp Limited yesterday said global fund manager Kohlberg Kravis Roberts & Co (KKR) and International Finance Corporation (IFC) would invest Rs440 crore in the company.
With the capital infusion, KKR would hold 14.95 per cent stake in Magma while IFC would acquire 12.8 per cent share holding in the company.
The funds would be used for Magma's growth and expansion activities.
"With this capital infusion, we believe Magma is well positioned to capitalise on its existing business opportunities, increase its thrust into new products in addition to accretive M&A," Magma vice chairman and managing director Sanjay Chamria said in a statement.
Magma expects its disbursements to grow by 50 per cent in FY'12. The company boasts a customer base of 2.36 lakh and has assets of Rs10,907 crore under management.
According to the statement, with the investment from IFC Magma would be able to expand its footprint in Bihar, West Bengal, Orissa, Chattisgarh and Rajasthan.
Magma claims loan recoveries of 100 per cent.