Magma Fincorp approves scheme of merger with Magma ITL Finance

Non-banking financial company (NBFC) Magma Fincorp today approved merger of its wholly-owned subsidiary Magma ITL Finance with itself.

The board also approved raising of up to Rs 750 crore through issue of securities in one or more tranches.

Magma ITL, also an NBFC, currently carries out the business of tractor financing.

The merger will help achieve greater integration and financial strength and flexibility to maximise overall shareholder value, Magma Fincorp said in a filing to the stock exchanges.

The merger will result in economies of scale, reduction in overheads including administrative, managerial and other expenditure, organisational efficiency and optimal utilisation of resources, it added.