Rising Sun Holdings has finalised an agreement to acquire a 60% stake in Indian non-banking lender Magma Fincorp in a deal valued at INR34.56bn ($475.18m).

Magma Fincorp is a Mumbai-based non-banking finance company (NBFC) with nearly three decades of experience. It offers credit to commercial, agriculture, SME, mortgage and general insurance purposes.

The controlling stake will be transferred through preferential share allotment, and the lender would be renamed as ‘Poonawalla Finance’.

Poonawalla Finance is an existing finance company owned by the Poonawalla family, which owns and controls Serum Institute of India – the maker of Oxford University-AstraZeneca Covishield vaccine in India.

After the transaction, the value of the non-bank lender is expected to rise to INR63bn.

Magma Fincorp has over five million customers across 21 states in India and manages loan book of INR150bn.

Rising Sun Holdings director Adar Poonawalla said: “I am excited at this opportunity to infuse majority capital for controlling stake of Magma Fincorp.

“I see an unlimited potential in India in the financial space as our economy is poised to grow in double digits and this ties in with our Group philosophy of serving the needs and dreams of the nation, and financial service plays an important role in supporting and fuelling the growth of our country.”

Rising Sun Holding says it intends to nominate Adar Poonawalla as the chairman of the new entity’s board of directors.

Commenting on the transaction, Magma Fincorp VC and MD Sanjay Chamria said: “Considering the positives in the deal by way of huge capital infusion, strong brand value and ability to attract top notch talent, the Board of the Company has rightly decided to accept an offer for a substantial equity infusion into the company.”