Calcutta, March 30: Asset finance company Magma Fincorp today said its board of directors had approved the allotment of Rs 500-crore equity shares ($80 million) to institutional investment firms -KKR, Indium V and LeapFrog Investments.

New York-based KKR is already an investor in Magma Fincorp , while Indium V (an investment vehicle advised by India Value Fund Advisors) and Mauritius-based LeapFrog Investments are the new investors.

Indium and LeapFrog will invest Rs 220 crore and Rs 200 crore, respectively. KKR, which first invested in Magma in 2011, will inject an additional Rs 80 crore. The company will issue 4.63 crore equity shares at a price of Rs 108 apiece (face value of Rs 2 and a premium of Rs 106).

The company said the proceeds of the equity capital infusion would be used to grow its business in an improving domestic financial market. Magma's total assets under management at the end of the December quarter stood at Rs 19,503 crore. Net profit was Rs 45.1 crore. The Magma stock surged 11.85 per cent to Rs 93 on the BSE today.

"For this round of investment, we have carefully selected partners who are firm believers in India's growth story and Magma's business model. They are providers of long-term strategic capital that can help Magma attain the next level of growth," Sanjay Chamria, vice-chairman and managing director of Magma Fincorp, said.

"Our existing investor KKR, by retaining its stake in the company, has reaffirmed its belief in the growth prospects of the company." he added.