Magma Fincorp, a Kolkata-based retail asset finance company, is planning to increase promoters? share in the company. It has already received shareholders? approval to increase promoters? stake by more than 4% to 53.9%.

It will issue 20 lakh warrants, in one or more tranches, to Microfirm Softwares Pvt Ltd. The decision was approved at the extraordinary general meeting on Thursday.

In fact, promoters have decided to increase their stake in Magma at a time when many Indian companies are in a rush to issue preferential allotments. According to analysts, this not only enables the promoters to increase their stake when the market is on the rise, but also sends signals to investors that the promoter is confident about the prospects of the company.

?Promoters are bullish on the company?s future growth prospects and want to consolidate their position further,? said a Magma spokesperson.

Prior to the allotment of 20 lakh warrants, Microfirm Softwares, a promoter-owned company, held 14.21% shares in Magma Fincorp. Microfirm has the option of subscribing to an equal number of equity shares within a span of 18 months, which would increase its stake to 21.42%.

Magma, which plans to raise Rs 50 crore through the issuance of warrants, has planned to spend the amount to meet future capital requirement.

Meanwhile, the company is looking at 20% growth in disbursal in 2009-10 backed by a strong demand in tractor and commercial vehicle financing and SME loans.

The company had disbursed Rs 3,590 crore during 2008-09 which was merely 2.2% growth over 2007-08. Business grew during the second half of the last fiscal by almost 148%.

Its disbursal increased to Rs 247 crore in March 2010 against Rs 80 crore for the same period last year.

?Most of the growth came from tractor, commercial vehicle financing and loans towards SMEs,? said Sanjay Chamria, vice chairman and MD of the company. ?Although tractors occupy merely 5% in our total disbursal, it has a huge growth potential,? he said. Fresh lending for the company is likely to touch Rs 3,670 crore in 2009-10.