The Securities and Exchange Board of India (Sebi) has banned Poonawalla Fincorp’s Managing Director Abhay Bhutada and 7 other entities from trading in the securities market. This restriction has been imposed on these units for insider trading in the shares of the company. Earlier the name of this company was Magma Fincorp. Apart from this, in the interim order issued by the regulator, it has also been directed to confiscate the wrongful earned money of Rs 13 crore.
In February 2021, there was an insider trading alert regarding the company’s shares in the regulator’s system. At the same time Rising Sun Holding Pvt Ltd, a unit of Poonawalla Group. It also announced the acquisition of a controlling stake in Magma Corp. After this alert, SEBI had investigated the matter. Let us tell you that the Serum Institute of India has manufactured the Kovid-19 vaccine Covishield.
ban on them
Apart from Bhutada, restrictions have been imposed on Saumil Shah, Surbhi Kishor Shah, Amit Agarwal, Murlidhar Bagranglal Agarwal, Rakesh Rajendra Bhojgadhia, Rakesh Rajendra Bhojgadhia HUF and Abhijit Pawar.
60 percent stake was bought in this company
Adar Poonawalla-controlled Rising Sun Holdings non-banking finance company (NBFC) will buy 60 per cent stake in Magma Fincorp. Poonawalla Finance is an existing finance company owned by the Poonawalla family, which owns and controls Serum Institute of India.
10 thousand branches of MFL
MFL has 10,000 branches across the country. It is spread across 22 states and has 10,000 employees. With the proposed capital infusion, the company expects improvement in productivity and operating metrics. The existing promoters will spend Rs 250 crore and Poonawalla will bring in around Rs 3,200 crore as capital.
Adar Poonawalla is the chairman of the company
In the month of June, there was a major reshuffle in the management of this company. Vaccine king Other Poonawalla was appointed the chairman of this company. Along with this, Vijay Deswal was appointed as the Chief Executive Officer (CEO) of the company. Prior to that he was the business head of ICICI Bank. Apart from this, Abhay Bhatadu was appointed as the Managing Director of the company.
More than 350 percent return given in the year 2021
Shares of Poonawalla Fincorp have given bumper returns to investors in the year 2021. The stock has registered a jump of 353 per cent since January. The share price in January was Rs 40. The share price increased to Rs 181.20 on 15 September 2021. During this, the stock registered a rise of 353 percent.
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