Mumbai, August 2, 2022: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the first quarter ended June 30, 2022. 

Summary of Consolidated results FY 23 – Q1 compared to FY 22 – Q1

            (Rs. in Cr)

The earnings per share for the quarter ended June 30, 2022 is Rs. 1.78. The consolidated net worth* as at June 30, 2022 stands at Rs. 7,809 Cr and the gross debt equity (equity of Rs.  7,809 Cr + non-controlling interest of Rs. 2,847 Cr) ratio is 1.10 times*. Cash and cash equivalents stands at Rs. 2,878 Cr. The book value per share is Rs. 81.83. 

Our consolidated loan book** stood at Rs. ­­­12,606 Cr as of ​June 3​0, 2022 compared to Rs. ­­­13,017 Cr as of March 31, 2022 and Rs. 11,014 Cr as of June 30, 2021. Gross NPA and Net NPA stood at 3.52% and 2.31% respectively as of June 30, 2022 compared to 4.27% and 2.67% respectively as of March 31, 2022 and 3.46% and 1.89% respectively as of June 30, 2021. The loan book under the Resolution Framework for Covid-19 announced by RBI stood at 0.45% as of June 30, 2022 (0.81% as of March 31, 2022). Overall provisions on the loan book stood at 4.5% of the loan book as of June 30, 2022 as compared to 5.8% of the loan book as of March 31, 2022 and 6.0% as of June 30, 2021. 

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book for the lending entities and does not include episodic financing book

 Summary of Segment-wise performance FY 23 – Q1 compared to FY 22 – Q1

            (Rs. in Cr)

            (Rs. in Cr)

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,

“The world economy has been impacted by the war in Ukraine, higher-than-expected inflation, tighter financial conditions and strict zero Covid policies in China.

The capital markets continue to remain volatile and primary equity issuances have reduced substantially as compared to last year. We expect September quarter to continue to remain challenging for primary market issuances. Our pipeline of Investment Banking mandates continues to remain healthy and we are confident to execute a substantial volume of transactions in the next available window of opportunity.

During the quarter, we received higher than anticipated levels of pre-payments across the lending book. The transaction flow for wholesale mortgage and bespoke financing transactions is strong and we are on track to achieve the guidance provided in May 2022 in our annual earnings call. The branch network of JM Financial Home Loans has expanded to 64 as of June 30, 2022 compared to 55 as of March 31, 2022. The increased infrastructure would further enhance the reach and accelerate the disbursements.

Looking ahead, we shall continue to leverage our strengths as an integrated and well capitalized financial services player.” 

Business Update 

• Investment Bank

   

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the Initial Public Offer of Equity Shares of Life Insurance Corporation of India (~Rs. 20,557 Cr), Paradeep Phosphates Limited (~Rs. 1,502 Cr) and Campus Activewear Limited (~Rs. 1,400 Cr)
• Sole Merchant Banker and Manager to the Buyback of Equity Shares of UPL Limited (~Rs. 1,100 Cr)
• Book Running Lead Manager to the Qualified Institutions Placement of Equity Shares of Indiabulls Real Estate Limited (~Rs. 865 Cr)
• Acted as the Lead Manager for the Maiden Public Placement of NCDs of Navi Finserv Limited (~Rs. 495 Cr)
• Advisor and manager in relation to the open offer to the shareholders of Eveready Industries
• Exclusive Financial Advisor to Hero FinCorp on fundraise from Apollo Global Management and other investors
• Exclusive Financial Advisor to Rapido on fundraise from Swiggy, TVS Motors, WestBridge, Shell Ventures and Nexus Ventures
• Fairness Opinion to the Board of JSW Ispat on amalgamation of Creixent Special Steels, JSW Ispat Special Products with and into JSW Steel Limited

   

  During the quarter, we acted as an:

• Arranger to the Private Placement of NCDs of Small Industries Development Bank of India (~Rs. 2,500 Cr), Indian Oil Corporation Limited (~Rs. 2,500 Cr), NABARD (~Rs. 2,030 Cr), Hindustan Petroleum Corporation Limited (~Rs. 1,500 Cr) and Tata Capital Financial Services Limited (~Rs. 300 Cr & ~Rs. 250 Cr)

   

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 747 Cr. 

  The Private Equity platform has completed the first closing of PE Fund III and is in the process of further fund raising. JM Financial India Fund III has also finalized three investments. Further, JM Financial India Fund II has completed ten investments and is now fully invested. 

  • Mortgage Lending

    The total mortgage lending book* (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,784 Cr as at June 30, 2022.

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers decreased from 4.17% as of March 2022 of the portfolio to 2.75% as of June 2022 of the portfolio. During this period, the loan book* has decreased from Rs. 7,362 Cr as of March 2022 to Rs. 6,865 Cr as of June 2022.
• Debt to equity stood at 1.21x.

  *Loan book does not include episodic financing book 

  The residential sales across all geographies and ticket sizes have been robust. With the rapid consolidation in the sector, top developers are garnering a high market share. We anticipate new project launches by top developers. Demand trends are expected to remain strong driven by favourable demographics, increasing urbanisation, amenities and work force. This is expected to increase the demand for construction finance. We are witnessing a strong pipeline of transactions and expect the lending traction to improve in a benign competitive environment. 

  • Alternative and Distressed Credit

     

    During the quarter, we closed 3 deals of which 2 were fresh acquisitions including a retail loan portfolio and 1 as a part of debt aggregation process. The quarter witnessed recoveries of Rs. 122 Cr backed by recovery from restructured accounts, sale of assets and NCLT process etc. Security Receipts of Rs. 69 Cr were redeemed and the outstanding Security Receipts stood at Rs. 11,405 Cr as on June 30, 2022 as compared to Rs. 10,936 Cr as on March 31, 2022. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs.  3,240 Cr as on June 30, 2022 as compared to Rs. 3,160 Cr as on March 31, 2022. 

  • Asset Management, Wealth Management and Securities business (Platform AWS) 

The AUM* of our wealth businesses stood at Rs. 83,337 Cr comprising of

• Private wealth management at Rs. 61,660 Cr (excluding custody assets) as on June 30, 2022 as compared to Rs. 61,211 Cr as on March 31, 2022 and Rs. 60,385 Cr as on June 30, 2021.
• Retail wealth management at Rs. 20,710 Cr as on June 30, 2022 as compared to Rs. 20,202 Cr as on March 31, 2022 and Rs. 17,683 Cr as on June 30, 2021.
• Elite wealth management at Rs. 967 Cr as on June 30, 2022 as compared to Rs. 1,030 Cr as on March 31, 2022 and Rs. 659 Cr as on June 30, 2021. We have built out a strong team of about 100 relationship managers under Elite Wealth Management.

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable 

We have significantly expanded our PMS team. The PMS team size stood at 23 as of June 30, 2022 from 9 as of June 30, 2021. With the team expansion almost done, we believe we are in a good position to accelerate the growth of the PMS business.

JM Financial Mutual Fund has on boarded senior hires across functions such as the Investment Team, Products, Sales, Risk, Operations and Technology. Our engagement efforts are picking pace and we have been rebuilding relationships with several key distributors. Over the last quarter, we have recruited 24 people in our asset management business. 

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 19,922 Cr. 

The Board of Directors has approved the modified scheme of demerger of the undertaking (“Scheme”) comprising of Private Wealth and PMS (catering to large clients) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its wholly owned subsidiary, JM Financial Services Limited to JM Financial Limited. The Scheme also comprises merger of JM Financial Capital Limited, which is a wholly owned subsidiary of JM Financial Services Limited, into JM Financial Services Limited. The Scheme shall be subject to regulatory and other approvals. Accordingly, once demerged the Private Wealth and PMS divisions shall be classified under the Investment Bank segment.

Borrowing Profile 

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on June 30, 2022 our long term borrowing as a proportion of total borrowing stood at approximately 80% and short term borrowing as a proportion of total borrowing stood at approximately 20%. Short term borrowing also includes working capital loans / borrowing for brokerage business.

-ends- 

The press release and unaudited financial results are available on our website www.jmfl.com 

About JM Financial 

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business. 

As of June 30, 2022, the consolidated loan book stood at ~Rs. 126.1 BN, distressed credit business AUM at ~Rs. 114.1 BN, wealth management AUM at ~Rs. 833.4 BN, mutual fund AAUM at ~Rs. 30.6 BN. 

The Group is headquartered in Mumbai and has a presence across 659 locations spread across 191 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. 

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements 

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, May 26, 2022: JM Financial Private Equity (the “Fund”) has led the INR 375 mn, Series B funding round in a Mumbai-based warehousing and fulfilment services provider, Emiza Supply Chain Services Pvt. Ltd. (“Emiza” or the “Company”), to fund the Company’s current expansion plans. Mayfield India – an existing investor in Emiza – has also participated in the Series B fund raise. Proceeds from the investment will support augmentation of the existing technology infrastructure, foray into last-mile operations, and expansion of the Company’s operations into other geographies.

Emiza caters to the warehousing and fulfilment needs of direct-to-consumer (“D2C”) brands as well as SMEs and large corporates selling online. Through its network of warehouses in eight cities across India, the Company provides services including storage, picking, packing, and labeling. The Company has over 100 customers which include leading D2C brands as well as large enterprises and SMEs across Beauty and Personal Care, Fashion and Accessories, Home and Kitchen, and Food and Beverages. The Company was founded by Ajay Rao who has deep domain expertise in logistics through decades of experience across India and the US. He is supported by a management team led by Jitendra Kumar and Arvind Shivkumar, both having extensive logistics experience.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial said, “India’s e-commerce market has witnessed a massive surge in terms of demand and purchase over the last few years across metros and Tier II & III cities, driven by the growing internet penetration and smartphone usage, and change in the buying behavior of consumers. To drive business and leverage the emerging growth opportunities, D2C brands and other companies selling online need to provide superior customer experience. That’s where Emiza comes in. We believe the fundamental shift in consumers’ purchasing behaviour, and their penchant for D2C and online retail is here to stay. With a strong emphasis on enhancing customer experience, increasing efficiency and reducing cost, Emiza has developed a strong value proposition. We believe that Emiza will eventually emerge as a leading player in the fulfilment services segment.”

Commenting on the capital raise, Mr. Ajay Rao, CEO, Emiza said, “Our company has scaled up rapidly over the last three years, and we envisage even faster growth over the next few years. This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and add other service lines to the business, including a last-mile platform to offer a complete suite of services to our customers. The founders and senior management have a deep understanding of the logistics industry, and given our strong customer-centric approach, we are confident of creating a leader in the e-com fulfilment service industry in India.” 

Commenting on their follow-on investment, Mr. Vikram Godse, Managing Partner, Mayfield India said, “We are happy to continue to support Ajay and his whole team at Emiza in their journey to become the leader in the D2C e-commerce fulfillment market. We believe the company has a strong value proposition which allows both its small and large D2C brand customers to focus on product development and market growth while Emiza completely takes over the function of order fulfillment.”

This is the tenth investment from the Fund II, and is in line with its stated strategy of investing in growth –oriented companies in the mid-market space.

About Emiza:

Emiza provides warehousing and fulfilment services to D2C brands, large corporates and SMEs selling online. It offers solutions such as picking, packing, and labelling of products, order management, multi-channel inventory management, returns and reverse logistics through its network of warehouses across eight cities in India.  More information about Emiza can be found at: https://emizainc.com/

About JM Financial India Fund II: JM Financial India Fund II, a category II AIF registered with SEBI, is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s leading vending solutions provider), Innovcare Lifesciences Private Limited (a leading nutraceutical player), Isthara Parks Private Limited (a leading coliving, student housing and urban living operator), BRFL Textiles Private Limited (one of India’s largest fabric manufacturers), Canpac Trends Private Limited (a leading manufacturer of folding cartons and other packaging materials), Walko Food Private Limited (a fast growing direct to consumer natural ice cream brand “nic”) and Big Haat Agro (a fast-growing agri-tech company focused on agri inputs, farmer advisory, and output linkages). For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

The Group is headquartered in Mumbai and has a presence across 634 locations spread across 185 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Mumbai, May 24, 2022: While approving the financial results for the last quarter and financial year ended March 31, 2022, the Board of Directors has recommended a final dividend of Rs. 1.15 per share (face value of Re.1/-).

Summary of Consolidated results FY 22 compared to FY 21

          (Rs. in Cr)

Summary of Consolidated results FY 22 – Q4 compared to FY 21 – Q4

          (Rs. in Cr)

The earnings per share for the year ended March 31, 2022 is Rs. 8.11. The consolidated net worth* as at March 31, 2022 stands at Rs. 7,634 Cr and the gross debt equity (equity of Rs.  7,634 Cr + non-controlling interest of Rs. 2,820 Cr) ratio is 1.22 times*. Cash and cash equivalents stands at Rs. 3,637 Cr. The book value per share is Rs. 80.01.

Our consolidated loan book** stood at Rs. ­­­13,017 Cr as of March 31, 2022 compared to Rs. 11,240 Cr as of December 2021 and Rs. 10,854 Cr as of March 31, 2021. Gross NPA and Net NPA stood at 4.27% and 2.67% respectively as of March 31, 2022 compared to 4.39% and 2.76% respectively as of December 31, 2021 and 3.50% and 1.95% respectively as of March 31, 2021. The loan book under the Resolution Framework for Covid-19 announced by RBI stood at 0.81% as of March 31, 2022 (0.91% as of December 31, 2021).

We have made additional gross provisions of Rs. 194 Cr^# on account of the uncertainties around Covid-19 for the year ended March 31, 2022, thereby taking the total provisions (net of reversals) to Rs. 500 Cr^# on account of the pandemic. Overall provisions on the loan book stood at 5.8% of the loan book as of March 31, 2022 as compared to 7.0% as of December 31, 2021 and 5.2% as of March 31, 2021.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book for the lending entities and does not include episodic financing book

# Unaudited and based on management estimates

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,

“We are pleased to achieve the highest ever annual operating consolidated net profit in FY22 on the back of strong capital markets business.

Our robust balance sheet position has allowed us to deliver a strong loan book in quarter ended March 2022 especially in the bespoke and retail mortgages segment. Our real estate loan book witnessed a higher than normal level of prepayments. As equity markets turn volatile, tactically, we will in turn focus on credit markets both in our distribution and syndication business as well as growth in loan book.

Our retail mortgage business is achieving critical size and scale. We have already expanded to around 55 locations and increased disbursements to over Rs. 220 Cr per quarter. We have crossed a critical milestone of over Rs.1,000 crore in loan book. We will continue to expand our presence in FY22-23.

We remain focused on serving our clients from an advisory, distribution and financing business.”

Business Update

• Investment Bank

  During the quarter, our completed investment banking transactions include:

• Sole Manager to the Buyback of Equity Shares of Tata Consultancy Services Limited (~Rs. 18,000 Cr)
• Book Running Lead Manager to the Initial Public Offer of Equity Shares of AGS Transact Limited (~Rs. 680 Cr)
• Sole Broker to the Block trades of Equity Shares of TVS Motor Company Limited (~Rs. 605 Cr), MTAR Technologies Limited (~Rs. 526 Cr) and Stove Kraft Limited (~Rs. 160 Cr)
• Financial Advisor in connection with the family arrangement involving the TVS Group
• Financial advisor to Escorts Limited on investment by Kubota Corporation (Japan) in Escorts Limited
• Financial Advisor to Honasa Consumer Pvt Ltd for acquisition of Bblunt
• Fairness Opinion to the Board of Directors of Equitas Holdings Limited (“EHL”) on the merger of EHL with Equitas Small Finance Bank Limited
• Fairness opinion to the board of Saurashtra Cement (SCL) on amalgamation of Gujarat Sidhee Cement with SCL
• Fairness opinion to the board of Kalpataru Power Transmission (KPTL) on amalgamation of JMC Projects into KPTL

   

  During the quarter, we acted as an:

• Arranger to the Private Placement of NCDs of Indian Oil Corporation Limited (Rs. 1,500 Cr), Hindustan Petroleum Corporation Limited (Rs. 1,500 Cr), Tata Capital Housing Finance Limited (Rs. 500 Cr and Rs. 146 Cr), Mahindra & Mahindra Financial Services Limited (Rs. 250 Cr), Aditya Birla Finance Limited (Rs. 210 Cr)
• Sole Arranger for the Maiden Private Placement of NCDs of Aragen Lifesciences Private Limited (Rs. 200 Cr)
• Advisor to the Private Placement of Market Linked Debentures (MLDs) of Adani Enterprises Limited (Rs. 150 Cr)
• Appointed as the Designated Market Maker for ICICI Prudential Mutual Fund’s ETF: ICICI Prudential 5 YEAR G-SEC ETF

   

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 1,372 Cr.

  The Private Equity platform has completed the first closing of PE Fund III and is in the process of further fund raising. JM Financial India Fund III has also finalized two investments. Further, JM Financial India Fund II has completed ten investments and is now fully invested.

  • Mortgage Lending

    The total mortgage lending book* (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 8,181 Cr as at March 31, 2022.

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers increased from 3.31% as of December 2021 of the portfolio to 4.17% as of March 2022 of the portfolio. During this period, the loan book* has increased from Rs. 6,741 Cr as of December 2021 to Rs. 7,362 Cr as of March 2022.
• Debt to equity stood at 1.29x and net debt to equity at 1.07x.

   

  *Loan book does not include episodic financing book

  The residential sales across all geographies and ticket sizes have been robust. Rapid consolidation in the sector continues whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches. In Mumbai Metropolitan region, we anticipate a lot of new launches on the back of the premiums paid for development of properties. This is expected to increase the demand for construction finance.  

  We had adopted a cautious approach due to the challenges faced since the COVID-19 pandemic. We maintained strong liquidity buffers to mitigate any unforeseen challenges. We have further strengthened our processes on origination and monitoring of business based on learnings from experiences emanating out of the various uncertainties in the sector. We believe that these changes will further improve our business processes as we look to capitalise on the opportunities to grow our loan book. 

  • Alternative and Distressed Credit

    The quarter witnessed a higher recovery of Rs. 451 Cr compared to previous quarter backed by recovery from sale of assets, restructured accounts, NCLT and settlement. Security Receipts of Rs. 179 Cr were redeemed and the outstanding Security Receipts stood at Rs. 10,936 Cr as on March 31, 2022 as compared to Rs. 10,710 Cr as on December 31, 2021. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,160 Cr as on March 31, 2022 as compared to Rs. 3,176 Cr as on December 31, 2021. Until March 31, 2022, we have acquired total outstanding dues of Rs. 63,757 Cr at a gross consideration of Rs. 18,138 Cr. With normalcy in business sentiments, we look forward to evaluate opportunities across corporate and retail loans for acquisitions.

  • Asset Management, Wealth Management and Securities business (Platform AWS)

The AUM* of our wealth businesses stood at Rs. 82,443 Cr comprising of

• Private wealth management at Rs. 61,211 Cr (excluding custody assets) as on March 31, 2022 as compared to Rs. 64,683 Cr as on December 31, 2021 and Rs. 59,052 Cr as on March 31, 2021.
• Retail wealth management at Rs. 20,202 Cr as on March 31, 2022 as compared to Rs. 19,424 Cr as on December 31, 2021 and Rs. 16,521 Cr as on March 31, 2021.
• Elite wealth management at Rs. 1,030 Cr as on March 31, 2022 as compared to Rs. 881 Cr as on December 31, 2021 and Rs. 549 Cr as on March 31, 2021. We have built out a strong team of about 92 relationship managers under Elite Wealth Management.

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

We have significantly expanded our PMS team. The PMS team size stood at 18 as of March 31, 2022 from 7 as of March 31, 2021. With the team expansion almost done, we believe we are in an extremely strong position to accelerate the growth of the PMS business.

JM Financial Mutual Fund serves nearly 1.35 lakh investors and close to 16,700 distributors across India through its 12 mutual fund schemes, 10 branches, and 81 service centres. In a bid to grow its AUM and folio base, the company has on boarded senior hires across functions such as the Investment Team, Products, Sales, Risk, Operations and Technology. Our engagement efforts are picking pace and we have been rebuilding relationships with several key distributors. Over the last one year we have recruited 29 people in our asset management business.

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 20,284 Cr.

The Board of Directors has approved the scheme of demerger of the undertaking (“Scheme”) comprising of Private Wealth and PMS (catering to large clients) along with the investment in JM Financial Institutional Securities Limited (which houses the institutional equities business) from its wholly owned subsidiary, JM Financial Services Limited to JM Financial Limited. The Scheme shall be subject to regulatory and other approvals. Accordingly, once demerged the Private Wealth and PMS divisions shall be classified under the Investment Bank segment.  

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on March 31, 2022 our long term borrowing as a proportion of total borrowing stood at approximately 78% and short term borrowing as a proportion of total borrowing stood at approximately 22%. Short term borrowing also includes working capital loans / borrowing for brokerage business.

-ends-

The press release and audited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

As of March 31, 2022, the consolidated loan book stood at ~Rs. 130.2 BN, distressed credit business AUM at ~Rs. 109.4 BN, wealth management AUM at ~Rs. 824.4 BN, mutual fund AAUM at ~Rs. 23.2 BN.

The Group is headquartered in Mumbai and has a presence across 634 locations spread across 185 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, April 29, 2022: JM Financial Limited, India’s leading diversified financial services group has announced the elevation of Sonia Dasgupta as Chief Executive Officer, Investment Banking. In the new role, she will lead the strategic initiatives and accelerate growth for the business.

Mr. Vishal Kampani, Non-Executive Vice Chairman, JM Financial Limited, said, “Sonia is a seasoned investment banking professional with a remarkable track-record. She brings the required leadership skills, industry knowledge and business insights to lead our business into the next phase of growth. We are delighted to have a home-grown leader at the helm of our Investment banking. Her strategic thinking and expertise will generate sustainable value for our clients.”

Assuming the new responsibilities, Ms. Sonia Dasgupta Chief Executive Officer Investment Banking, JM Financial, said, “I am excited to take on the new role and responsibilities. Over the years, JM Financial has built a strong leadership position in the investment banking space across verticals. I aim to continue to work towards taking the rich legacy forward. With our strong team, we'll take the investment banking business to a higher growth trajectory.”

Sonia Dasgupta comes with over 25 years of experience in the Investment Banking space. She has been associated with JM Financial since 1995 in different capacities. She succeeds Adi Patel and Atul Mehra who have been Co-Heads of Investment Banking business.

JM Financial Investment Banking offers a wide range of services to a significant client base that encompasses domestic and international corporations of repute. It has an unparalleled track record of 5 decades of executing Equity Capital Market offerings and M&A transactions with a deep sectoral understanding and long-term relationships with corporates.

 About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

As of December 31, 2021, the consolidated loan book stood at ~Rs. 112.4 BN, distressed credit business AUM at ~Rs. 107.1 BN, wealth management AUM at ~Rs. 849.9 BN, mutual fund AAUM at ~Rs. 20.2 BN.

The Group is headquartered in Mumbai and has a presence across 624 locations spread across 186 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact: 

Mumbai, February 7, 2022: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2021.                              

The Board of Directors have declared an interim dividend of Re. 0.50 per share of the face value of Re.1/- each.

Summary of Consolidated results FY 22 – Q3 compared to FY 21 – Q3

          (Rs. in Cr)

Summary of Consolidated results FY 22 – 9M compared to FY 21 – 9M

          (Rs. in Cr)

The earnings per share for the nine months ended December 31, 2021 is Rs. 6.23. The consolidated net worth* as at December 31, 2021 stands at Rs. 7,499 Cr and the gross debt equity (equity of Rs.  7,499 Cr + non-controlling interest of Rs. 2,770 Cr) ratio is 1.05 times* and net debt equity of 0.68 times* (post reducing cash and cash equivalents of Rs. 3,854 Cr). The book value per share is Rs. 78.60.

Our consolidated loan book** stood at Rs. ­­­11,240 Cr as of December 31, 2021 compared to Rs. 10,407 Cr as of December 31, 2020. Gross NPA and Net NPA stood at 4.39% and 2.76% respectively as of December 31, 2021 compared to 1.79% and 1.16% respectively as of December 31, 2020 and 2.32% and 1.38% respectively as of September 30, 2021. The loan book under the Resolution Framework for Covid-19 announced by RBI stood at 0.91% as of December 31, 2021 (0.87% as of September 30, 2021). Our Gross NPAs have increased by Rs. 0.66 Cr on account of the clarifications issued by the Reserve Bank of India on Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated November 12, 2021.

We have made additional gross provisions of Rs. 185 Cr^# on account of the uncertainties around Covid-19 for the nine months ended December 31, 2021, thereby taking the total provisions (net of reversals) to Rs. 536 Cr^# on account of the pandemic. Overall provisions on the loan book stood at 7.0% of the loan book as of December 31, 2021 as compared to 5.1% as of December 31, 2020 and 6.4% as of September 30, 2021.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# Unaudited and based on management estimates

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,

“We are pleased to achieve the highest ever quarterly operating consolidated net profit in Q3 FY22, despite having a strong Q1FY22 and Q3FY21. Our consolidated net profit for 9MFY22 at Rs. 594.4 Cr has already surpassed full year consolidated net profit for FY21 of Rs. 590.1 Cr.

We are actively looking to grow the loan book across our lending segments and are witnessing strong traction particularly in bespoke finance.

Our retail mortgage business is now achieving critical size and scale. We have already expanded to around 50 locations and increased disbursements to over Rs. 150 Cr per quarter. The pipeline of digital initiatives remains strong. We announced the launch of Bondskart, a unique digital platform for ease of investment in debt securities. We have made critical hires, launched new products and added new features to our existing digital products for a seamless customer experience.

We remain focused on serving our clients and in line with the recent budget announcements, we look forward to participate in a strong growth environment.

Business Update

• Investment Bank

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the
  • Initial Public Offer of Equity Shares of FSN E-Commerce Ventures Limited (~Rs. 5,350 Cr), Aditya Birla Sun Life AMC Limited (~Rs. 2,768 Cr), Sapphire Foods India Limited (~Rs. 2,073 Cr), CMS Info Systems Limited (~Rs. 1,100 Cr), C.E Info Systems Limited (~Rs. 1,040 Cr), Go Fashion (India) Limited (~Rs. 1,014 Cr) and Tega Industries Limited (~Rs. 620 Cr)
  • Pre-IPO Placement and Initial Public Offer of Equity Shares of Data Patterns (India) Limited (~Rs. 650 Cr)
  • Qualified Institutions Placement of Equity Shares of Route Mobile Limited (~Rs. 867 Cr), Saregama India Limited (~Rs. 750 Cr), HFCL Limited (~Rs. 600 Cr) and Gokaldas Exports Limited (~Rs. 300 Cr)
• Lead Manager to the Rights Issue of Equity Shares of Bharti Airtel Limited (~Rs. 20,987 Cr)
• Advisor to the Private Placement in API Holdings Limited (~Rs. 2,600 Cr) and Car Dekho (~Rs. 1,500 Cr)
• Arranger for the Public Issue of NCDs by JM Financial Products Limited (~Rs. 500 Cr)
• Sole Broker to the Block trade of Equity Shares of Go Fashion (India) Limited (~Rs. 180 Cr) and Metropolis Healthcare Limited (~Rs. 135 Cr)
• Lead M&A Advisor to API Holdings and Docon Technologies, and Manager to the Open Offer to the shareholders of Thyrocare Technologies
• Exclusive Financial Advisor to Sundaram Asset Management Company for the purchase of the Indian asset management businesses of Principal Group, USA
• Transaction Advisor and Manager to the Open Offer to the public shareholders of Just Dial
• Financial and Transaction Advisor to IL&FS on sale of stake in TerraCIS Technologies
• Financial Advisor in connection with a scheme of arrangement involving Orient Refractories and certain group companies
• Fairness Opinion to the Board of Shriram City Union Finance Limited (“SCUF”) for the Merger of SCUF with Shriram Transport Finance Company Limited

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of REC Limited (~Rs. 1,200 Cr and ~Rs. 2,000 Cr), Indian Railway Finance Corporation Limited (~Rs. 1,180 Cr), National Highway Authority of India (~Rs. 1,180 Cr), Mangalore Refinery and Petrochemicals Limited (~Rs. 1,200 Cr), Mahindra & Mahindra Financial Services Limited in two tranches (~Rs. 375 Cr and Rs. 275 Cr) and Tata Capital Financial Services Limited (~ Rs. 500 Cr)
• BASEL III Additional Tier I Bonds of Canara Bank (two tranches of ~Rs. 1,500 Cr each), Bank of Baroda (~Rs. 1,997 Cr) and Union Bank of India (~Rs. 200 Cr)

   

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 637 Cr.

  During the quarter, the Private Equity platform has completed the first closing of PE Fund III and is in the process of further fund raising. JM Financial India Fund II has completed eight investments and is closely evaluating additional investments.

  • Mortgage Lending

    The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,376 Cr as at December 31, 2021.

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers decreased from 5.09% as of September 2021 of the portfolio to 3.31% as of December 2021 of the portfolio. During this period, the loan book has increased from Rs. 6,595 Cr as of September 2021 to Rs. 6,741 Cr as of December 2021.

• Debt to equity stood at 1.19x and net debt to equity at 0.76x.

• The last quarter has seen a rapid recovery across all geographies after the second Covid wave. The residential sales across all geographies and across all ticket sizes have been robust. However, consumer confidence in the developer and project is of paramount importance.

  We are also witnessing rapid consolidation in the sector whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually and significantly. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.

  All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We continue to cautiously evaluate opportunities across geographies and are looking at gradually increasing the lending book.

  • Alternative and Distressed Credit

    Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 204 Cr and Security Receipts of ~Rs. 142 Cr were redeemed. The outstanding Security Receipts stood at Rs. 10,710 Cr as on December 31, 2021 as compared to Rs. 10,687 Cr as on September 30, 2021. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,176 Cr as on December 31, 2021 as compared to Rs. 3,140 Cr as on September 30, 2021. Until December 31, 2021, we have acquired total outstanding dues of Rs. 63,265 Cr at a gross consideration of Rs. 17,733 Cr. Our acquisition strategy has primarily been towards full cash acquisitions and going forward too, the focus will be on similar lines. However, the future acquisition focus will be more on a co-investment model with financial investors and strategic partners to ensure growth and at the same time ensuring sustainable and moderate level of debt leverage. In the coming year, we shall also focus on acquiring retail portfolios of optimal sizes at right prices.

  • Asset Management, Wealth Management and Securities business (Platform AWS)

The AUM* of our wealth businesses stood at Rs. 84,988 Cr comprising of

• Private wealth management at Rs. 64,683 Cr (excluding custody assets) as on December 31, 2021 as compared to Rs. 56,757 Cr as on December 31, 2020 and Rs. 63,760 Cr as on September 30, 2021.
• Retail wealth management at Rs. 19,424 Cr as on December 31, 2021 as compared to Rs. 15,731 Cr as on December 31, 2020 and Rs. 18,841 Cr as on September 30, 2021.
• Elite wealth management at Rs. 881 Cr as on December 31, 2021 as compared to Rs. 360 Cr as on December 31, 2020 and Rs. 793 Cr as on September 30, 2021.

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

The AUM of our PMS business stood at Rs. 770 Cr as on December 31, 2021 as compared to Rs. 608 Cr as on December 31, 2020 and Rs. 811 Cr as on September 30, 2021.

The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2021 stood at Rs. 2,020 Cr; comprising of Rs. 578 Cr in equity schemes (including hybrid schemes) and Rs. 1,442 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2021 stood at Rs. 2,089 Cr; comprising of Rs. 551 Cr in equity schemes (including hybrid schemes) and Rs. 1,538 Cr in debt schemes (including liquid scheme).

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 17,548 Cr.

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on December 31, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 79%. Borrowing through Commercial paper (CP) consisted approximately 13% of the total borrowing as on December 31, 2021. CPs were utilized primarily towards the financing of short-term liquid assets. We successfully raised Rs. 500 Cr through the public issue of Non-Convertible Debentures of JM Financial Products Limited.

-ends- 

The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

As of December 31, 2021, the consolidated loan book stood at ~Rs. 112.4 BN, distressed credit business AUM at ~Rs. 107.1 BN, wealth management AUM at ~Rs. 849.9 BN, mutual fund AAUM at ~Rs. 20.2 BN.

The Group is headquartered in Mumbai and has a presence across 624 locations spread across 186 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, 20 January, 2022: JM Financial Private Equity (the “Fund”) has finalized a total investment round of INR1,000 mn, along with co-investors, as a part of Series B fund raise in a Bengaluru based agri-digital platform, BigHaat Agro Pvt Ltd (“BigHaat” or the “Company”), to fund the Company’s current growth plans. Beyond Next Ventures, one of the earlier investors in BigHaat also participated in the fund raise.   Proceeds from the investment will support augmentation of the existing technology infrastructure and accelerate expansion of the Company’s operations. This marks the closing of the ninth investment by JM Financial India Fund II.

Set up in 2015, BigHaat functions on a unique direct-to-farmer model and is transforming the agriculture value chain by leveraging science, data and technology. It is impacting a large number of farmers across the country by providing access to over 7,000 SKUs of high quality inputs, end-to-end crop guidance and market linkages for various commodities, thus offering a 360 degree solution to farmers.  BigHaat’s industry leading technology also allows farmers to diagnose and receive advice on growth and disease related issues. The Company’s pan-India presence has enabled over 700,000 farmers to regularly engage on its platform on a monthly basis. The Company has been catering to the input needs of farmers in over 13,000 unique pincodes of the country. BigHaat was founded by first generation entrepreneurs – Sateesh Nukala, Sachin Nandwana and Kiran Vunnam, who have combined their strong technology background and their deep roots in agriculture, to bring about a fundamental shift in the life and earnings of the farmers of the country.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial said, “We are extremely bullish on the fundamental shift that we are witnessing in the Indian agriculture sector driven by the increased internet and smartphone usage in rural India. It’s the start of a decade long story and will eventually go on to digitize the oldest, biggest and employment-wise the most important sector of the Indian economy. With its strong emphasis on technology and direct connect with the farmers, BigHaat has developed a unique model of aspiring to  work alongside the farmers to not only help increasing yields and limiting losses, but also to fetch the best price for their end-produce. We believe that BigHaat could eventually emerge amongst the most trusted brand in the farmer community.”

Commenting on the capital raise, Mr. Sateesh Nukala, Managing Director, BigHaat said, “This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand our reach across the Indian hinterlands. Because of their strong agrarian background, the founders deeply understand the challenges and the needs of the Indian farmer and this has led BigHaat to adopt a distinctive approach of directly reaching out and establishing a long term connect with the Indian farmer as a trusted advisor. We are committed to deepening this relationship with each passing year and to create the first profitable, end-to-end agri-tech platform in the country”

This is the ninth investment from the Fund II, and is in line with its stated strategy of investing in growth –oriented companies in the mid-market space.

About BigHaat:

BigHaat owns and operates the agri-input marketplace www.bighaat.com. The company along with its subsidiaries, provides farmers an end to end platform from providing quality inputs, offering farm advisory services and facilitating market linkages with large institutional buyers for sale of their final produce.  More information about BigHaat can be found at: http://www.bighaat.com/

About JM Financial India Fund II: JM Financial India Fund II, a category II AIF registered with SEBI, is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s leading vending solutions provider), Innovcare Lifesciences Private Limited (a leading nutraceutical player), Isthara Parks Private Limited (a leading coliving, student housing and urban living operator), BRFL Textiles Private Limited (one of India’s largest fabric manufacturers), Canpac Trends Private Limited (a leading manufacturer of folding cartons and other packaging materials) and Walko Food Private Limited (a fast growing direct to consumer natural ice cream brand “nic”). For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

The Group is headquartered in Mumbai and has a presence across 601 locations spread across 181 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact: 

• Offers 360-degree fixed income investment options

   

• Powered by intensive insights, advanced technology and end-to-end security features

   

• Provides flexibility to buy and sell debt securities with secure settlements

   

• Runs on minimum human intervention, delivering brilliant time and functional efficiency

Mumbai, November 24, 2021: JM Financial Products Limited, the flagship NBFC arm of the JM Financial Group announced the launch of Bondskart.com, a one-of-its-kind intuitive digital investment platform that offers investors access to an extensive array of debt securities, paving the way for hassle-free investments. Bondskart.com will further enhance the bouquet of financial services that JM Financial currently offers.

This seamless online platform is equipped with cutting-edge technology and end-to-end security features. Offering a safe, user-friendly and trusted interface for fixed income investment options, Bondskart.com enables the investors with various investment options to take decisions that suits them.  

Bondskart.com features diverse 360-degree fixed income investment options across rating categories, yields and instrument types such as plain vanilla bonds, sub-debt/ Tier II & perpetual bonds aided by in-house analytics and data driven technology platform.

The platform powered by intensive insights on fixed income investment, aims to also educate investors on various aspects of investments thereby enabling them to make an informed decision. Bondskart.com also provides investors with the flexibility to sell their debt securities with secure settlements, adding liquidity as a utility function to the platform.

Going forward, JM Financial plans to add more value-added services to Bondskart.com. The fully customised platform runs on minimum human intervention, offering excellent time and functional efficiency. It is available in web as well as on mobile app on android as well as iOS

Commenting on the launch, Mr. Vishal Kampani- Managing Director, JM Financial Products Limited said, “Bondskart.com is in line with our vision to emerge as the most trusted partner in the financial investment eco-system. It complements our investment distribution framework which would serve all categories of investors. With a larger focus on adopting the tech-driven solutions, we believe Bondskart.com will

offer seamless investment solutions to investors, enabling them to benefit from our fixed income investment expertise.”

The platform is backed by JM Financial which boasts of professionals with a proven track record in various aspects of debt capital market such as credit ratings, investment advisory, corporate banking, treasury, fund raising, sales and distribution.

Bondskart.com marks JM Financial's journey into developing efficiency in accessing the bond market for investors through digitisation. The platform will act as a potent alternative route for investing in bonds.

Do Download the app to get real time order updates, get notified about new securities, get instant access to public issues of debt securities and learn about bonds investment and more.

App store: https://apps.apple.com/in/app/bondskart-by-jm-financial/id1587320428

Play store: https://play.google.com/store/apps/details?id=com.jm.bondskart

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv)Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.  

For more information, log on to www.jmfl.com or contact:

Mumbai, October 28, 2021: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2021. 

Summary of Consolidated results FY 22 – Q2 compared to FY 21 – Q2

          (Rs. in Cr)

Summary of Consolidated results FY 22 – H1 compared to FY 21 – H1

          (Rs. in Cr)

The earnings per share for the half year ended September 30, 2021 is Rs. 3.96. The consolidated net worth* as at September 30, 2021 stands at Rs. 7,281 Cr and the gross debt equity (equity of Rs.  7,281 Cr + non-controlling interest of Rs. 2,725 Cr) ratio is 1.08 times* and net debt equity of 0.68 times* (post reducing cash and cash equivalents of Rs. 3,957 Cr). The book value per share is Rs.  76.35. 

Our consolidated loan book** stood at Rs. ­­­11,072 Cr as of September 30, 2021 compared to Rs. 11,386 Cr as of September 30, 2020. Gross NPA and Net NPA stood at 2.32% and 1.38% respectively as of September 30, 2021 compared to 1.69% and 1.13% respectively as of September 30, 2020. The loan book under the Resolution Framework for Covid-19 announced by RBI  stood at 0.87% as of September 30, 2021 (0.62% as of June 30, 2021). 

We have made additional gross provisions of Rs. 76 Cr^# on account of the uncertainties around Covid-19 for the quarter ended September 30, 2021, thereby taking the total provisions (net of reversals) to Rs. 559 Cr^# on account of the pandemic. 

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# Unaudited and based on management estimates 

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said, 

“The economy is showing signs of revival with growth impulses picking up pace, thus paving the way for the economy to gain escape velocity from the pandemic.

We have delivered another strong quarter and the numbers look encouraging reflecting sustainable growth. We achieved a significant milestone, wherein the total consolidated networth including the non-controlling interests has crossed Rs.10,000 Cr.

We continue to diversify our liabilities franchise and have successfully concluded the public issue of secured Non-Convertible Debentures by JM Financial Products Limited of Rs. 500 Cr.

As economic activities are gradually coming back to normal, we are well positioned to drive value for our stakeholders banking on our robust balance sheet and diverse set of businesses.” 

Business Update 

• Investment Bank 

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the
  • Initial Public Offer of Equity Shares of Clean Science & Technology Limited (~Rs. 1,546 Cr), Krsnaa Diagnostics Limited (~Rs. 1,213 Cr), India Pesticides Limited (~Rs. 800 Cr), Rolex Rings Limited (~Rs. 713 Cr) and Tatva Chintan Pharma Chem Limited (~Rs. 500 Cr)
  • Qualified Institutions Placement of Equity Shares of Bank of India Limited (~Rs. 2,550 Cr) and Canara Bank Limited (~Rs. 2,500 Cr)
• Sole Advisor to the Private Placement in Gupshup Technology India Private Limited (~Rs. 1,800 Cr)
• Lead Manager for the Public Issue of NCDs by Piramal Capital & Housing Finance Limited (~Rs. 850 Cr)
• Sole Broker to the Block trade of Equity Shares of NSE Limited (~Rs. 485 Cr) and Stove Kraft Limited (~Rs. 75 Cr)
• Sole Manager to the Buyback of Equity Shares of Insecticides India Limited (~Rs. 60 Cr)
• Exclusive Manager to the Open Offer to the public shareholders of Mphasis Limited by BCP Topco IX Pte. Ltd
• Exclusive Financial Advisor to Calibre Chemicals and its promoters on controlling stake sale to Everstone Capital
• Acquisition of 100% stake of Exide Life Insurance Company Limited by HDFC Life Insurance Company Limited. JM Financial Limited provided Fairness Opinion to the Board of Directors of HDFC Life Insurance Company Limited
• Fairness Opinion on share exchange ratio on amalgamation of Gangavaram Port with Adani Ports and Special Economic Zone
• Fairness Opinion to the Board of Equitas Holdings w.r.t the proposed amalgamation with Equitas Small Finance Bank

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of Indian Railway Finance Corporation Limited (~Rs. 4,000 Cr and ~Rs. 2,890 Cr),Food Corporation of India Limited (~Rs. 8,000 Cr), THDC India Limited (~Rs. 1,200 Cr), Power Finance Corporation Limited (~Rs. 4,793 Cr), LIC Housing Finance Limited (~Rs. 975 Cr)
• Tier II Bonds of Bank of India (~Rs. 1,800 Cr)
• Sub-debt in the nature of NCDs by Royal Sundaram General Insurance Company Limited (~Rs. 76 Cr) 

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 625 Cr. 

  The private equity fund, JM Financial India Fund II, has completed eight investments and has initiated the process for the fund raise for Fund III. 

  • Mortgage Lending

    The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,102 Cr as at September 30, 2021. 

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers decreased from 5.99% as of June 2021 of the portfolio to 5.09% as of September 2021 of the portfolio. During this period, the loan book has decreased from Rs. 7,166 Cr as of June 2021 to Rs. 6,595 Cr as of September 2021.
• Debt to equity stood at 1.24x and net debt to equity at 0.74x.

  The last quarter has seen a rapid recovery across all geographies after the second Covid wave. The residential sales across all geographies and across all ticket sizes have been robust. However, consumer confidence in the developer and project is of paramount importance.

  We are also witnessing rapid consolidation in the sector whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually and significantly. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.

  All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We are cautiously evaluating opportunities across geographies and will look at gradually increasing the lending book. However, the uncertainty of the third wave continues to keep us cautious in underwriting loans. 

  • Alternative and Distressed Credit

    Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 315 Cr and Security Receipts of ~Rs. 213 Cr were redeemed. The outstanding Security Receipts stood at Rs. 10,687 Cr as on September 30, 2021 as compared to Rs. 10,885 Cr as on June 30, 2021. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,140 Cr as on September 30, 2021 as compared to Rs. 3,150 Cr as on June 30, 2021. Until September 30, 2021, we have acquired total outstanding dues of Rs. 62,418 Cr at a gross consideration of Rs. 17,568 Cr. Going forward, our focus would remain on recoveries and resolution while we continue to work with financial and strategic investors for acquisition. This quarter, in line with previous two quarters, also witnessed good recoveries given the continued focus on resolution and recoveries. On acquisition front, as planned, we continued our efforts on aggregation of balance debt, and looking for new opportunities.

  • Asset Management, Wealth Management and Securities business (Platform AWS) 

The AUM* of our wealth businesses stood at Rs. 83,394 Cr comprising of

• Private wealth management at Rs. 63,760 Cr (excluding custody assets) as on September 30, 2021 as compared to Rs. 54,015 Cr as on September 30, 2020 and Rs. 60,385 Cr as on June 30, 2021.
• Retail wealth management at Rs. 18,841 Cr as on September 30, 2021 as compared to Rs. 14,993 Cr as on September 30, 2020 and Rs. 17,683 Cr as on June 30, 2021.
• Elite wealth management at Rs. 793 Cr as on September 30, 2021 as compared to Rs. 265 Cr as on September 30, 2020 and Rs. 659 Cr as on June 30, 2021.

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable 

The AUM of our PMS business stood at Rs. 811 Cr as on September 30, 2021 as compared to Rs. 555 Cr as on September 30, 2020 and Rs. 757 Cr as on June 30, 2021.

The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2021 stood at Rs. 2,089 Cr; comprising of Rs. 551 Cr in equity schemes (including hybrid schemes) and Rs. 1,538 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2021 stood at Rs. 2,135 Cr; comprising of Rs. 522 Cr in equity schemes (including hybrid schemes) and Rs. 1,613 Cr in debt schemes (including liquid scheme). 

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 12,506 Cr. 

Borrowing Profile 

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on September 30, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 77%. Borrowing through Commercial paper (CP) consisted approximately 16% of the total borrowing as on September 30, 2021. CPs were utilized primarily towards the financing of short-term liquid assets.

Awards & Recognitions 

 The Great Place to Work ® - July 2021

• JM Financial Limited (including all institutional businesses), JM Financial Asset Management Limited and JM Financial Services Limited recognised as ‘Commitment to Being a Great Place to Work’

-ends- 

The press release and unaudited financial results are available on our website www.jmfl.com

 About JM Financial 

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business. 

As of September 30, 2021, the consolidated loan book stood at ~Rs. 110.7 BN, distressed credit business AUM at ~Rs. 106.9 BN, wealth management AUM at ~Rs. 833.9 BN, mutual fund AAUM at ~Rs. 20.9 BN. 

The Group is headquartered in Mumbai and has a presence across 601 locations spread across 181 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. 

For more information, log on to www.jmfl.com or contact: 

Forward - Looking statements 

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

 This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions. 

Mumbai, October 28, 2021: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2021. 

Summary of Consolidated results FY 22 – Q2 compared to FY 21 – Q2

​

Summary of Consolidated results FY 22 – H1 compared to FY 21 – H1

          (Rs. in Cr)

The earnings per share for the half year ended September 30, 2021 is Rs. 3.96. The consolidated net worth* as at September 30, 2021 stands at Rs. 7,281 Cr and the gross debt equity (equity of Rs.  7,281 Cr + non-controlling interest of Rs. 2,725 Cr) ratio is 1.08 times* and net debt equity of 0.68 times* (post reducing cash and cash equivalents of Rs. 3,957 Cr). The book value per share is Rs.  76.35.

Our consolidated loan book** stood at Rs. ­­­11,072 Cr as of September 30, 2021 compared to Rs. 11,386 Cr as of September 30, 2020. Gross NPA and Net NPA stood at 2.32% and 1.38% respectively as of September 30, 2021 compared to 1.69% and 1.13% respectively as of September 30, 2020. The loan book under the Resolution Framework for Covid-19 announced by RBI  stood at 0.87% as of September 30, 2021 (0.62% as of June 30, 2021).

We have made additional gross provisions of Rs. 76 Cr^# on account of the uncertainties around Covid-19 for the quarter ended September 30, 2021, thereby taking the total provisions (net of reversals) to Rs. 559 Cr^# on account of the pandemic.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# Unaudited and based on management estimates

Commenting on the results and financial performance, Mr. Vishal Kampani, Non-executive Vice Chairman, JM Financial Limited, said,

“The economy is showing signs of revival with growth impulses picking up pace, thus paving the way for the economy to gain escape velocity from the pandemic.

We have delivered another strong quarter and the numbers look encouraging reflecting sustainable growth. We achieved a significant milestone, wherein the total consolidated networth including the non-controlling interests has crossed Rs.10,000 Cr.

We continue to diversify our liabilities franchise and have successfully concluded the public issue of secured Non-Convertible Debentures by JM Financial Products Limited of Rs. 500 Cr.

As economic activities are gradually coming back to normal, we are well positioned to drive value for our stakeholders banking on our robust balance sheet and diverse set of businesses.”

Business Update

• Investment Bank

   

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the
  • Initial Public Offer of Equity Shares of Clean Science & Technology Limited (~Rs. 1,546 Cr), Krsnaa Diagnostics Limited (~Rs. 1,213 Cr), India Pesticides Limited (~Rs. 800 Cr), Rolex Rings Limited (~Rs. 713 Cr) and Tatva Chintan Pharma Chem Limited (~Rs. 500 Cr)
  • Qualified Institutions Placement of Equity Shares of Bank of India Limited (~Rs. 2,550 Cr) and Canara Bank Limited (~Rs. 2,500 Cr)
• Sole Advisor to the Private Placement in Gupshup Technology India Private Limited (~Rs. 1,800 Cr)
• Lead Manager for the Public Issue of NCDs by Piramal Capital & Housing Finance Limited (~Rs. 850 Cr)
• Sole Broker to the Block trade of Equity Shares of NSE Limited (~Rs. 485 Cr) and Stove Kraft Limited (~Rs. 75 Cr)
• Sole Manager to the Buyback of Equity Shares of Insecticides India Limited (~Rs. 60 Cr)
• Exclusive Manager to the Open Offer to the public shareholders of Mphasis Limited by BCP Topco IX Pte. Ltd
• Exclusive Financial Advisor to Calibre Chemicals and its promoters on controlling stake sale to Everstone Capital
• Acquisition of 100% stake of Exide Life Insurance Company Limited by HDFC Life Insurance Company Limited. JM Financial Limited provided Fairness Opinion to the Board of Directors of HDFC Life Insurance Company Limited
• Fairness Opinion on share exchange ratio on amalgamation of Gangavaram Port with Adani Ports and Special Economic Zone
• Fairness Opinion to the Board of Equitas Holdings w.r.t the proposed amalgamation with Equitas Small Finance Bank

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of Indian Railway Finance Corporation Limited (~Rs. 4,000 Cr and ~Rs. 2,890 Cr),Food Corporation of India Limited (~Rs. 8,000 Cr), THDC India Limited (~Rs. 1,200 Cr), Power Finance Corporation Limited (~Rs. 4,793 Cr), LIC Housing Finance Limited (~Rs. 975 Cr)
• Tier II Bonds of Bank of India (~Rs. 1,800 Cr)
• Sub-debt in the nature of NCDs by Royal Sundaram General Insurance Company Limited (~Rs. 76 Cr)

   

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 625 Cr. 

  The private equity fund, JM Financial India Fund II, has completed eight investments and has initiated the process for the fund raise for Fund III. 

  • Mortgage Lending

    The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,102 Cr as at September 30, 2021. 

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers decreased from 5.99% as of June 2021 of the portfolio to 5.09% as of September 2021 of the portfolio. During this period, the loan book has decreased from Rs. 7,166 Cr as of June 2021 to Rs. 6,595 Cr as of September 2021.
• Debt to equity stood at 1.24x and net debt to equity at 0.74x.

  The last quarter has seen a rapid recovery across all geographies after the second Covid wave. The residential sales across all geographies and across all ticket sizes have been robust. However, consumer confidence in the developer and project is of paramount importance.

  We are also witnessing rapid consolidation in the sector whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually and significantly. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.

  All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We are cautiously evaluating opportunities across geographies and will look at gradually increasing the lending book. However, the uncertainty of the third wave continues to keep us cautious in underwriting loans.

   

  • Alternative and Distressed Credit

    Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 315 Cr and Security Receipts of ~Rs. 213 Cr were redeemed. The outstanding Security Receipts stood at Rs. 10,687 Cr as on September 30, 2021 as compared to Rs. 10,885 Cr as on June 30, 2021. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,140 Cr as on September 30, 2021 as compared to Rs. 3,150 Cr as on June 30, 2021. Until September 30, 2021, we have acquired total outstanding dues of Rs. 62,418 Cr at a gross consideration of Rs. 17,568 Cr. Going forward, our focus would remain on recoveries and resolution while we continue to work with financial and strategic investors for acquisition. This quarter, in line with previous two quarters, also witnessed good recoveries given the continued focus on resolution and recoveries. On acquisition front, as planned, we continued our efforts on aggregation of balance debt, and looking for new opportunities.

  • Asset Management, Wealth Management and Securities business (Platform AWS)

The AUM* of our wealth businesses stood at Rs. 83,394 Cr comprising of

• Private wealth management at Rs. 63,760 Cr (excluding custody assets) as on September 30, 2021 as compared to Rs. 54,015 Cr as on September 30, 2020 and Rs. 60,385 Cr as on June 30, 2021.
• Retail wealth management at Rs. 18,841 Cr as on September 30, 2021 as compared to Rs. 14,993 Cr as on September 30, 2020 and Rs. 17,683 Cr as on June 30, 2021.
• Elite wealth management at Rs. 793 Cr as on September 30, 2021 as compared to Rs. 265 Cr as on September 30, 2020 and Rs. 659 Cr as on June 30, 2021.

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

 The AUM of our PMS business stood at Rs. 811 Cr as on September 30, 2021 as compared to Rs. 555 Cr as on September 30, 2020 and Rs. 757 Cr as on June 30, 2021.

The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2021 stood at Rs. 2,089 Cr; comprising of Rs. 551 Cr in equity schemes (including hybrid schemes) and Rs. 1,538 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2021 stood at Rs. 2,135 Cr; comprising of Rs. 522 Cr in equity schemes (including hybrid schemes) and Rs. 1,613 Cr in debt schemes (including liquid scheme). 

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 12,506 Cr. 

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on September 30, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 77%. Borrowing through Commercial paper (CP) consisted approximately 16% of the total borrowing as on September 30, 2021. CPs were utilized primarily towards the financing of short-term liquid assets.

Awards & Recognitions 

 The Great Place to Work ® - July 2021

• JM Financial Limited (including all institutional businesses), JM Financial Asset Management Limited and JM Financial Services Limited recognised as ‘Commitment to Being a Great Place to Work’

-ends- 

The press release and unaudited financial results are available on our website www.jmfl.com 

About JM Financial 

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

As of September 30, 2021, the consolidated loan book stood at ~Rs. 110.7 BN, distressed credit business AUM at ~Rs. 106.9 BN, wealth management AUM at ~Rs. 833.9 BN, mutual fund AAUM at ~Rs. 20.9 BN.

The Group is headquartered in Mumbai and has a presence across 601 locations spread across 181 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. 

For more information, log on to www.jmfl.com or contact: 

Forward - Looking statements 

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. 

• Secured NCDs of face value of Rs.1,000 each

   

• The Tranche I Issue includes a Base Issue Size for an amount of up to Rs.100 crore with an option to retain oversubscription upto Rs. 400 crore aggregating up to Rs.500 crore which is within the Shelf Limit of Rs. 1,500 crore

   

• Tranche I Issue opens on September 23, 2021 and closes on October 14, 2021*

   

• Tranche I Issue rated as [ICRA] AA/(STABLE) by ICRA and CRISIL AA/STABLE by CRISIL

   

• The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option and Series II, III and IV comes with fixed interest rate option*

   

• Fixed Coupon Rate of up to 8.30% per annum*

   

• Floating interest rate to be calculated based on 91 day T-bill +3.15% spread*

   

• Tenor ranging from 39 months to 100 months*

   

• Minimum application size Rs. 10,000 collectively across all Series*

   

• Allotment on first-come, first-serve basis^#

   

• Investors can apply for NCDs only in dematerialized form

   

• The NCDs are proposed to be listed on BSE

Mumbai, September 17, 2021: JM Financial Products Limited, the flagship NBFC arm of the JM Financial Group, announced Tranche – I public issue of Secured NCDs of face value of Rs. 1,000 each.

Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, "JM Financial Products has fortified its position across business verticals with a diversified product mix while maintaining a focus on risk adjusted profitable growth. The Company has maintained strong liquidity buffers. This public issuance will continue to help us diversify our borrowing and investor mix. Our strong balance sheet, well-capitalised and diverse set of businesses and strategic client-focused approach position us to drive sustainable value for our stakeholders.”

# debt excludes borrowing for episodic financing of Rs.949.55 crore as of June 30, 2021

The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 Months. Series I carries floating interest rate based on 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”) plus 3.15% spread. The Coupon for Series I NCDs will depend on the movement of the T-bill rate.

In addition, Series II, III and IV comes with fixed interest rate option in the tenor of 60 Months (Annual), 60 Months (Monthly) and 100 Months (Annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate).

*Issue Structure:

* T-bill refers to 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”) on their website http://www.fbil.org.in/ in the “T-Bill Curve” sub-tab or sub-menu under the main tab or main menu “Money Market/ Interest Rates” or on any other such part of the respective website of FBIL as may be reorganized from time to time. For more details about the Series I NCDs, please see "Additional terms specific to Series I NCDs" hereafter.

** The Coupon for Series I NCDs will depend on the movement of the T-bill rate. Actual coupon shall be derived by adding spread of 315 basis points to the reference 91DayT-Bill Benchmark i.e. simple average (rounded off to two decimal after zero) of the 91Day T-Bill Rate published by FBIL for last 10 working days prior to the respective Benchmark Determination Date

**For the purpose of Series I NCDs, the cash flows shall change in accordance with change in reference 91DayT-Bill Benchmark.

** The Floating Coupon to be rounded upto 2 decimals.

***The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

# With respect to Series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual Series will be made at the time of redemption of the NCDs.

With respect to Series where interest is to be paid on a monthly basis, relevant interest will be calculated from the first day till the last date of every month during the tenor of such NCDs, and paid on the first day of every subsequent month. For the first interest payment for NCDs where interest is to be paid on a monthly basis, interest from the Deemed Date of Allotment till the last day of the subsequent month will be clubbed and paid on the first day of the month next to that subsequent month. The last interest payment will be made at the time of redemption of the NCDs.

Note: If the Deemed Date of Allotment undergoes a change, the interest payment dates, Redemption Dates and other cash flow workings shall be changed accordingly.

Note: The amounts payable under all Series are subject to applicable tax deducted at source, if any.

Category I – Institutional Investors, Category II – Non-Institutional Investors, Category III – High Net-Worth Individuals and Category IV – Retail Individual Investors are eligible to apply in the Tranche I Issue.

The Lead Managers to the Issue are Equirus Capital Private Limited and JM Financial Limited. *

*In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with Regulation 25(3) of the SEBI NCS Regulations, as amended, JMFL will be involved only in marketing of the Issue.

The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment / prepayment of interest and principal of the borrowings of the Company (at least 75%) and for general corporate purposes (up to 25%).

Notes to the Editor: About JM Financial Products Limited

Our Company is a “Systemically Important Non – Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India and operates under the “JM Financial” franchise. Incorporated as J.M. Lease Consultants Private Limited on July 10, 1984, we are focused on offering a broad suite of loan products which are customized to suit the needs of the corporates, institutions, SMEs and individuals. Our Company broadly operates under the following verticals viz.

 (i) Bespoke financing; (ii) Real estate financing; (iii) Capital market financing; (iv) Retail mortgage financing; and (v) Financial institution financing.

• Bespoke financing – This vertical caters to corporates and includes all types of bespoke lending to companies across various sectors, promoter financing against listed / unlisted securities and property collateral, acquisition financing, subordinated or mezzanine financing, other secured lending and syndication.
• Real estate financing – Our real estate financing segment includes loan against land, loan against project at early stage, project funding, loan against ready residential / commercial property and loan against shares.
• Capital market financing – Our capital market financing segment includes loans against securities, margin trade financing, arbitrage, buy now sell later, ESOP financing, broker financing, public offer financing and personal loans.
• Retail mortgage financing – Under this segment, our Company offers home loans, education institutions loans and loan against property. Loans under this segment are primarily provided against collateral of property and receivables.
• Financial institution financing – Under this segment, our Company offers loans to RBI registered financial institutions (NBFCs, MFIs, etc) against the receivables in their loan book. The funds shall be used for onward lending to their customers, working capital requirements, refinancing and/or any other purpose as acceptable to our Company.

In addition to the above, we have ventured into digital led real estate broking/consulting business under the brand name “Dwello”. Our Company, through Dwello, operates primarily in the residential real estate segment and assists buyers during all the stages of their real estate buying cycle. Further, we have entered in the housing finance business through our subsidiary, JM Financial Home Loans Limited. The focus of our housing finance business would be to provide home loans to retail customers with a focus on affordable housing segment. We have also entered into the institutional fixed income business. The focus of the business is on mobilizing debt capital for corporates by way of distribution to various investor segments, sales and distribution in secondary bond markets and credit research.

JMFPL’s aggregate loan book (excluding episodic financing) stood at Rs. 3,228.11 crore* as of June 30, 2021.

*Excluding episodic financing of Rs.944.84 crore

For further information, please contact:

Disclaimer:

^# ALLOTMENT ON FIRST CUM FIRST SERVE BASIS: Allotment on first come first serve basis in the public issue of debt securities shall be made on the basis of date of upload of each application into the electronic book of the stock exchange. However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis. For further details refer section titled “Issue Related Information” on page [54] of the Tranche I Prospectus dated September 16, 2021.

*The Tranche I Issue shall remain open for subscription on Working Days from 10:00 a.m. to 5:00 p.m. (Indian Standard Time), during the period indicated in this Tranche I Prospectus, except that the Tranche I Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the Company ("Board") or the NCD Public Issue Committee of the Board of Directors of the Company. In the event of such an early closure of or extension of the Tranche I Issue, the Company shall ensure that notice of such early closure or extension is given to the prospective investors through an advertisement in all the newspapers in which pre-Issue advertisement and advertisement for opening or closure of the Tranche I Issue have been given, on or before such earlier date of the closure or extended date of the Tranche I Issue, in terms of Schedule V of the SEBI NCS Regulations. Applications through the UPI route will be accepted, subject to compliance by the investor with the eligibility criteria and due procedure for UPI applications prescribed by SEBI. Applications Forms for the Tranche I Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period. On the Tranche I Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded until 5:00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5:00 p.m. (Indian Standard Time) on one Working Day post the Tranche I Issue Closing Date. For further details, see “Issue Related Information” on page 54 of the Tranche I Prospectus dated September 16, 2021.

^#For further details please refer Shelf Prospectus and Tranche I Prospectus both dated September 16, 2021

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Mumbai, July 28, 2021: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the first quarter ended June 30, 2021. 

Summary of Consolidated results FY 22 – Q1 compared to FY 21 – Q1

          (Rs. in Cr)

 The earnings per share for the quarter ended June 30, 2021 is Rs. 2.13. The consolidated net worth* as at June 30, 2021 stands at Rs. 7,154 Cr and the gross debt equity (equity of Rs. 7,154 Cr + non-controlling interest of Rs. 2,673 Cr) ratio is 1.09 times* and net debt equity of 0.69 times* (post reducing cash and cash equivalents of Rs. 3,892 Cr). The book value per share is Rs. 75.03. 

Our consolidated loan book** stood at Rs. ­­­11,014 Cr as of June 30, 2021 compared to Rs. 10,833 Cr as of June 30, 2020. Gross NPA and Net NPA stood at 3.46% and 1.89% respectively as of June 30, 2021 compared to 1.80% and 1.22% respectively as of June 30, 2020. We have made additional gross provisions (including fair value loss) of Rs. 132 Cr^# on account of the uncertainties around Covid-19 for the quarter ended June 30, 2021, thereby taking the total provisions to Rs. 515 Cr^# on account of the pandemic.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# unaudited and based on management estimates

Segment reclassification: Until financial year 2020-21, our reportable business segments were (i) Investment banking, wealth management and securities business (IWS) (ii) Mortgage Lending (iii) Distressed credit and (iv) Asset Management.

During the quarter ended June 30, 2021, the underlying businesses of the reportable segments have been reclassified. The purpose of the said reclassification of business segments is primarily to create a client-aligned business structure to enable deeper focus, faster growth and a seamless execution of the organization’s digital strategy. Accordingly, our reclassified business segments are as follows:

1. Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance;
2. Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP);
3. Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and
4. Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“We have reported our highest ever quarterly operating net profit. Our diversified business model has demonstrated time and again resilience through economic and market volatility. This new realignment of business segments will facilitate seamless execution of our strategy. Over the last few years, the integration amongst the various sub businesses in IWS has worked extremely well. We believe that the new realignment will scale our businesses from the current levels and also ensure focus on new initiatives.

The Investment Bank has demonstrated strong performance and the pipeline is robust. The Alternative and Distressed credit business witnessed significant recovery during the quarter and contributed to the overall profitability of the Group. The disbursements in the Wholesale Mortgage Lending business will pick up post travel and other restrictions are eased. The infrastructure network of Retail Mortgage Lending is being built out rapidly. Platform AWS businesses have been integrated to focus on individual customer segments’ investment and savings needs. The Platform AWS business will be actively investing in various digital initiatives to enable rapid growth and top quality customer experience.

Overall, our strong balance sheet, well capitalised and diverse set of businesses and strategic client-focused approach positions us to perform well and drive sustainable value for our stakeholders as we are hopeful about economic revival in the year ahead.”

Business Update

• Investment Bank

   

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager to the
  • Initial Public Offer of Equity Shares of Sona BLW Precision Forgings Limited (~Rs. 5,550 Cr), Macrotech Developers Limited (~Rs. 2,500 Cr) and Shyam Metalics and Energy Limited (~Rs. 909 Cr)
  • Qualified Institutions Placement of Equity Shares of IDFC First Bank Limited (~Rs. 3,000 Cr)
  • Rights Issue of Equity Shares of Sundaram Finance Holdings Limited (~Rs. 355 Cr)
• Lead Manager for the Public Issue of NCDs by
  • Muthoot Finance Limited (~Rs. 1,700 Cr)
  • India Grid Trust (~Rs. 1,000 Cr) (Sole Lead Manager)
• Sole Broker to the Block trade of Equity Shares of TVS Motors Limited (~Rs. 1,506 Cr) and Suprajit Engineering Limited (~Rs. 237 Cr)
• Selling Broker to the Offer for Sale of Equity Shares of JSW Ispat Special Products Limited, Accelya Solutions Limited (~Rs. 248 Cr) and Orchid Pharma Limited (~Rs. 160 Cr)
• Sole Manager to
  • Voluntary Delisting of Equity Shares of Prabhat Dairy Limited (~Rs. 492 Cr)
  • Buyback of Equity Shares of NIIT Limited (~Rs. 237 Cr)
• Financial Advisor to Heineken for acquisition of 14.99% stake in United Breweries
• Exclusive Financial Advisor to the TVS Group on acquisition of ZF Friedrichshafen AG’s 49% shareholding in Brakes India
• Exclusive Financial Advisor to the Open Offer to the equity shareholders of Timex Group India
• Financial and Transaction Advisor to IL&FS Group on sale of stake in IL&FS Environmental Infrastructure & Services Limited and its subsidiaries to EverEnviro Resource Management
• Financial Consultant to Vini Cosmetics on Sale of majority stake to KKR

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of REC Limited and HPCL. (~Rs. 5,950 Cr)
• Basel III compliant Tier II bonds of Union Bank of India. (~Rs. 1,000 Cr)

   

  During the quarter, the average daily trading volume of our institutional equities business stood at Rs. 481 Cr.

   

  The private equity fund, JM Financial India Fund II, has completed eight investments and has initiated the process for the fund raise for Fund III.

   

   

  • Mortgage Lending

    The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,614 Cr as at June 30, 2021.

     

    Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. Further details in respect of the wholesale mortgage lending are as under:

• SMA 2 numbers increased from 3.50% as of March 2021 of the portfolio to 5.99% as of June 2021 of the portfolio. During this period, the loan book has decreased from Rs. 7,219 Cr as of March 2021 to Rs. 7,166 Cr as of June 2021.
• Debt to equity stood at 1.30x and net debt to equity at 0.86x.

  The last quarter has been impacted due to lockdowns faced in different geographies in different measures. Though the collections seen from projects in the quarter were still heathy, the footfalls in the projects saw a sharp decline and hence impacted the fresh sales in most projects. Having said that the general sentiment towards residential real estate remains positive and we are witnessing increased demand across ticket sizes. We are also witnessing rapid consolidation in the sector whereby the amount of sales done by top developers as a percentage of overall sales is increasing gradually and significantly. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.

  All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We are cautiously evaluating opportunities across geographies and will look at gradually increasing the lending book. However, the fear of the third wave continues to keep us cautious in underwriting loans.

   

  • Alternative and Distressed Credit

    Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 1,071 Cr and Security Receipts of ~Rs. 226 Cr were redeemed. We also acquired loans of two companies during the quarter. The outstanding Security Receipts stood at Rs. 10,885 Cr as on June 30, 2021 as compared to Rs. 11,060 Cr as on March 31, 2021. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,150 Cr as on June 30, 2021 as compared to Rs. 3,193 Cr as on March 31, 2021. Until June 30, 2021, we have acquired total outstanding dues of Rs. 62,116 Cr at a gross consideration of Rs. 17,477 Cr. Going forward, our focus would remain on recoveries and resolution while we continue to work with financial and strategic investors for acquisition.

  • Asset Management, Wealth Management and Securities business (Platform AWS)

The AUM* of our wealth businesses stood at Rs. 78,320 Cr comprising of

• Private wealth management at Rs. 60,385 Cr (excluding custody assets) as on June 30, 2021 as compared to Rs. 47,579 Cr as on June 30, 2020 and Rs. 59,052 Cr as on March 31, 2021.
• Retail wealth management at Rs. 17,276 Cr as on June 30, 2021 as compared to Rs. 14,253 Cr as on June 30, 2020 and Rs. 16,171 Cr as on March 31, 2021.
• Elite wealth management at Rs. 659 Cr as on June 30, 2021 as compared to Rs. 237 Cr as on June 30, 2020 and Rs. 549 Cr as on March 31, 2021.

The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2021 stood at Rs. 2,135 Cr; comprising of Rs. 522 Cr in equity schemes (including hybrid schemes) and Rs. 1,613 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2021 stood at Rs. 2,389 Cr; comprising of Rs. 591 Cr in equity schemes (including hybrid schemes) and Rs. 1,798 Cr in debt schemes (including liquid scheme). Mr. Amitabh Mohanty has been newly appointed as a Managing Director and Chief Executive Officer of JM Financial Asset Management Limited.

The AUM of our PMS business stood at Rs.757 Cr as on June 30, 2021 as compared to Rs.480 Cr as on June 30, 2020 and Rs.673 Cr as on March 31, 2021. Mr. Vinay Jaising has joined us as Co-Head of PMS.

During the quarter, the average daily trading volume of our retail broking business stood at Rs. 11,502 Cr.

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on June 30, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 81%. Borrowing through Commercial paper (CP) consisted approximately 12% of the total borrowing as on June 30, 2021. These CPs were utilised primarily towards the financing of short-term liquid assets.

Awards & Recognitions

 The Great Place to Work Institute. India's Best Companies To Work For, 2021

• JM Financial Home Loans Limited recognized among India’s Top 50 Great Mid- Sized Workplaces 2021

* Assets under Management (AUM) comprises distribution assets and advisory assets, as applicable

-ends-

The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (i) Investment Bank (IB) shall cater to Institutional, Corporate, Government and Ultra High Networth clients and includes investment banking, institutional equities and research, private equity funds, fixed income, syndication and finance; (ii) Mortgage Lending includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP); (iii) Alternative and Distressed Credit includes the asset reconstruction business and alternative credit funds; and (iv) Asset management, Wealth management and Securities business (Platform AWS) shall provide an integrated investment platform to individual clients and includes wealth management business, broking, PMS and mutual fund business.

As of June 30, 2021, the consolidated loan book stood at ~Rs. 110.1 BN, distressed credit business AUM at ~Rs. 108.8 BN, wealth management AUM at ~Rs. 783.2 BN, mutual fund AAUM at ~Rs. 21.3 BN.

The Group is headquartered in Mumbai and has a presence across 575 locations spread across 177 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, June 09, 2021: JM Financial Private Equity (the “Fund”) has finalized an investment of INR 350 mn in a Pune based consumer packaged food company, Walko Food Company Private Limited (“Walko” or the “Company”), to fund the Company’s current expansion plans. Proceeds from the investment will support brand building activities and augmentation of the existing capacities of the Company. This marks the closing of the eighth investment by JM Financial India Fund II.

Walko Food Company owns a fast growing natural ice cream brand “NIC”. The Company operates a manufacturing plant in Pune and retails in over 50 cities across India, via multiple sales channels like food delivery platforms, Modern Trade, Parlors, and HORECA. In a short span of time, NIC has emerged as one of the leading national brand in the natural ice cream category and is the highest selling ice cream brand on FoodTech platforms. In addition to NIC, the Company has recently launched desi kulfi brand “GRAMEEN”. The ice cream flavours range from fruit, dry fruit variants’ to international tastes like sea salted caramel, Madagascar chocolate, French Vanilla and the ones inspired by Indian Mithais like GulabJamun, Sheer Khurma, Til Gud, Gajar Halwa to name a few. The Company is founded by Mr. Jeetendra Bhandari, a first generation entrepreneur who brings decades of professional experience in USA with leading MNCs like Coca-Cola and Walmart.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial said, “The domestic ice cream market is large and growing and we believe that there is a long runway of growth banking on low per capita ice cream consumption, foodtech platforms and development of multiple distribution channels and formats. Within the broader ice cream market, NIC has established a good product market fit with its differentiated, high quality natural ice cream and direct to consumer strategy. All these factors have led to a strong brand recall for NIC and a healthy customer repeat ratio. NIC is well-placed to address the changing customer preferences for relatively healthier, preservative free snacking options. The fund infusion will help the company scale-up its business and expand its market share.”

Commenting on the capital raise, Mr. Jeetendra Bhandari (JB), Managing Director, Walko said, “This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and

expand market share. NIC has emerged as a fast growing natural ice cream brand in the country during FY20-21 and is rapidly scaling up.  Walko is focused on building brands which deliver on quality, innovation and superior customer experience. Walko plans to deploy funds to increase geographic penetration, open Flagship parlors (Experience Centers), manufacturing capacity expansion and marketing. Ice cream per capita consumption in India is very low when compared to G-20 economies and as such it provides long term secular growth opportunity. We see excellent growth potential for NIC and GRAMEEN in the coming years.”

This is the eighth investment from the Fund II, and is in line with its stated strategy of investing in growth companies in the mid-market space.

Advisors on the deal included Dexter Capital Advisors (Investment Bankers), Think Law (legal advisor to JM Financial India Fund II) and Patanjali Associates (legal advisor to Walko Food Company).

About Walko

Walko Food owns and retails a fast growing direct to consumer natural ice cream brand “NIC”. Walko also owns brands like Cream Pot (premium frozen desserts) and Café Chocolade (chocolate shake parlors). More information about NIC can be found at: http://nicicecreams.com/

About JM Financial India Fund II

JM Financial India Fund II, a category II AIF registered with SEBI, is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s leading vending solutions provider), Innovcare Lifesciences Private Limited (a leading nutraceutical player), Isthara Parks Private Limited (a leading coliving, student housing and urban living operator), BRFL Textiles Private Limited (one of India’s largest fabric manufacturers) and Canpac Trends Private Limited (a leading manufacturer of folding cartons and other packaging materials). For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

The Group is headquartered in Mumbai and has a presence across 550 locations spread across 170 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

Mumbai, May 5, 2021: While approving the financial results for the fourth quarter and financial year ended March 31, 2021, the Board of Directors of JM Financial Limited has recommended a dividend of Re. 0.50 per share of the face value of Re.1/- each. 

Summary of Consolidated results FY 21 – Q4 compared to FY 20 – Q4  (Rs. in Cr)

Summary of Consolidated results FY 21 compared to FY 20   (Rs. in Cr)

The earnings per share for the year ended March 31, 2021 is Rs. 6.34. The consolidated net worth* as at March 31, 2021 stands at Rs. 6,947 Cr and the gross debt equity (equity of Rs. 6,947 Cr + non-controlling interest of Rs. 2,605 Cr) ratio is 1.29 times* and net debt equity of 0.73 times* (post reducing cash and cash equivalents of Rs. 5,351 Cr). The book value per share is Rs. 72.92. 

Our consolidated loan book** stood at Rs. ­­­10,854 crore as of March 31, 2021 compared to Rs. 11,531 crore as of March 31, 2020. Gross NPA and Net NPA stood at 3.50% and 1.95% respectively as of March 31, 2021 compared to 1.65% and 1.13% respectively as of March 31, 2020. We have made additional gross provisions of Rs. 208 Cr on account of the uncertainties around COVID-19 for the year ended March 31, 2021, thereby taking the total provisions to Rs. 383 Cr on account of the pandemic. 

* Computed after reducing goodwill of Rs.52.44 Cr from shareholders’ funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book 

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said, 

“FY20-21 has been one of the most challenging years amidst the uncertainties on account of COVID-19. In spite of the economic volatility during the year, the capital markets remained strong on the back of strong liquidity.

 We are pleased to report that we have concluded the financial year on a positive note, banking on our diversified and resilient business model with strong performance across our business segments. 

Our investment banking, wealth and securities businesses have done exceedingly well and our pipeline for these businesses is extremely healthy. Despite the challenges from COVID-19, we had strong recoveries in our distressed credit business in FY2020-21. Our retail mortgage business has gained momentum and its further build will be a key focus area. The lending book continues to remain robust and asset quality is in check. Our balance sheet is extremely strong with Net Debt to Equity at 0.73x. 

We continue to closely monitor the external environment given the uncertainties due to the second wave of the pandemic. Looking ahead, we are well positioned to grow and further scale our businesses in this financial year.” 

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

        The IWS segment continued the momentum during the quarter. The pipeline for            our investment banking transactions continues to remain healthy.

•  During the quarter, our completed investment banking transactions include:

• Sole Manager to the Buyback of Equity Shares of Tata Consultancy Services Limited (~Rs. 16,000 Cr) and Wipro Limited (~Rs. 9,500 Cr)
• Book Running Lead Manager to the Qualified Institutions Placement of Equity Shares of Bank of Baroda (~Rs. 4,500 Cr) and Poly Medicure Limited (~Rs. 400 Cr)
• Lead Manager for the Public Issue of NCDs of Power Finance Corporation Limited (Rs. 4,429 Cr)
• Book Running Lead Manager to the Initial Public Offer of Units of Brookfield India Real Estate Trust (~Rs. 3,800 Cr), Equity Shares of Anupam Rasayan India Limited (~Rs. 760 Cr), Easy Trip Planners Limited (~Rs. 510 Cr), Stove Kraft Limited (~Rs. 413 Cr) and MTAR Technologies Limited (~Rs. 696 Cr) (including Pre-IPO Placement).
• Sole Manager to the Voluntary Delisting of Equity Shares of Xchanging Solutions Limited (~Rs. 95 Cr)
• Financial Advisor to India Grid Trust for acquisition of 74% of share capital of Parbati Koldam Transmission Company
• Advisory to Brookfield on acquisition of a portfolio of office and retail assets, and co-working business from RMZ Group and its promoters
• Manager to the Open Offer to the shareholders of Fairchem Organics
• Fairness opinion on the share exchange ratio relating to the amalgamation of Adani Ports and Special Economic Zone and Bramhi Tracks Management Services

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of diversified public sector companies like IRFC and IOCL. (~Rs. 4,300 Cr)
• NCDs in the form of Basel III compliant Additional Tier I bonds of Union Bank of India and Bank of Baroda. (~Rs. 2,000 Cr)

   

  The AUA of our private wealth management business stood at Rs. 59,052 Cr (excluding custody assets) as on March 31, 2021 as compared to Rs. 44,883 Cr as on March 31, 2020 and Rs. 56,757 Cr as on December 31, 2020. The AUA of our Independent Financial Distribution (IFD) business stood at Rs. 16,171 Cr as on March 31, 2021 as compared to Rs. 13,437 Cr as on March 31, 2020 and Rs. 15,731 Cr as on December 31, 2020.

  During the quarter, the average daily trading volume stood at Rs. 14,248 Cr. 

  During the quarter, we also funded 17 public issues (including 1 NCD issue) aggregating to a funding of ~Rs. 38,641 Cr. 

  • Mortgage Lending

    The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,650 Cr as at March 31, 2021. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. 

    The highlights of the quarter in respect of the wholesale mortgage lending are as under:

• SMA2 numbers decreased from 8.04% as of December 2020 of the portfolio to 3.50% as of March 2021 of the portfolio. During this period, the loan book has increased from Rs. 6,993 Cr as of December 2020 to Rs. 7,219 Cr as of March 2021.
• Debt to equity stood at 1.51x and net debt to equity at 0.90x.

   

  The last quarter has seen a significant increase in sales velocity across all geographies we are present in. Efforts made by some state governments along with measures by the central government have helped developers in many ways. The reduction in stamp duty, coupled with the correction in prices along with the general view that prices have bottomed out has helped increase the demand for residential real estate. We have seen some movement in credit to the sector. We have also seen rapid consolidation and believe that going forward the industry will have very few players and the market share of the larger developers will continue to increase. Given the reduction of the inventory overhang across geographies and the rise in demand, developers are looking at acquiring new projects and we will witness increase in new launches.

   

  All the above have been in line with our expectations and we feel that this end user driven sales is here to stay. We are cautiously evaluating opportunities across geographies and will look at gradually increasing the lending book. However, the impact of the second wave of COVID 19 which we have been currently experiencing is yet to be seen. 

  During the quarter ended March 31, 2021, JM Financial Credit Solutions Limited invested Rs. 50 Cr in JM Financial Home Loans Limited for 8.99% stake. The infusion is at Rs. 33.74/- per equity share at a pre-money equity valuation of JM Financial Home Loans Limited of Rs. 510 Cr. Further, JM Financial Credit Solutions Limited shall have a right but not an obligation to invest an additional amount of ~Rs.440 Cr at the same price per share of Rs.33.74/- on or prior to June 30, 2021 or such timeline as may be mutually extended, subject to regulatory and other customary approvals as may be required. If JM Financial Credit Solutions Limited decides to make further investment of Rs. 440 Cr as above, upon receipt of all the approvals as are required, it would hold 49% equity stake in JM Financial Home Loans Limited post the allotment of the said shares. 

  • Distressed Credit

Higher focus on recoveries yielded results and recoveries during quarter were about ~Rs. 240 Cr and Security Receipts of ~Rs. 141 Cr were redeemed. We also acquired loans of two companies during the quarter. The outstanding Security Receipts stood at Rs. 11,060 Cr as on March 31, 2021 as compared to Rs. 10,915 Cr as on December 31, 2020. The contribution of JM Financial Asset Reconstruction Company Limited towards the Security Receipts stood at Rs. 3,193 Cr as on March 31, 2021 as compared to Rs. 2,923 Cr as on December 31, 2020. Until March 31, 2021, we have acquired total outstanding dues of Rs. 61,666 Cr at a gross consideration of Rs. 17,427 Cr. In spite of the pandemic we achieved good results with total recovery of ~Rs 1,192 Cr in FY 21 through the Corporate Insolvency Resolution Process, SARFAESI and settlement. Going forward, our focus would remain on recoveries and resolution while we continue to work with financial and strategic investors for acquisition.

Beginning this quarter we have restarted evaluating few accounts for acquisition purposes. We closed one large acquisition and acquired a significant majority of the debt of the Company. We will continue to aggregate the balance debt in the coming quarters. Going forward we would continue to evaluate the right acquisition opportunities and gradually grow our book.

• Asset Management

 The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2021 stood at Rs. 2,389 Cr; comprising of Rs. 591 Cr in equity schemes (including hybrid schemes) and Rs. 1,798 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2020 stood at Rs. 3,700 Cr; comprising of Rs. 815 Cr in equity schemes (including hybrid schemes) and Rs. 2,885 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating ~Rs. 146 Cr under JM Financial Yield Enhancer (Distressed Opportunity) Fund I. 

Borrowing Profile 

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on March 31, 2021 our long term borrowing as a proportion of total borrowing stood at approximately 78%. Borrowing through Commercial paper (CP) consisted approximately 9% of the total borrowing as on March 31, 2021. These CP’s were utilised primarily towards the financing of short term liquid assets.

 Awards & Recognitions 

14th Institute of Chartered Accountants of India (ICAI) Awards

• Mr. Nimesh Kampani, our Group Chairman, was inducted into the ‘CA Hall of Fame Award’ by Institute of Chartered Accountants of India (ICAI)

  The Asset Triple A Sustainable Capital Markets Country & Regional Awards 2020

• JM Financial Limited awarded for the ‘Best IPO’ under the Best Deal category (Mindspace Business Parks Reit 45 billion rupees IPO)
• JM Financial Limited awarded for the ‘Best rights issue’ under the Best Deal category (Reliance Industries US$7.1 billion rights offering)
• JM Financial Limited awarded for the ‘Best block trade’ under the Best Deal category (Bandhan Bank US$1.4 billion block trade)

-ends-

 The press release and audited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management which includes the mutual fund business.  

As of March 31, 2021, the consolidated loan book stood at ~Rs. 108.5 BN, distressed credit business AUM at ~Rs. 110.6 BN, wealth management AUA at ~Rs. 590.5 BN, mutual fund AAUM at ~Rs. 23.9 BN. 

The Group is headquartered in Mumbai and has a presence across 550 locations spread across 170 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. 

For more information, log on to www.jmfl.com or contact: 

 
 Forward - Looking statements 

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events. 

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, March 26, 2021: JM Financial Private Equity (the “Fund”) has finalized an investment of INR 600 mn in a Gujarat-based folding carton and packaging solutions company, Canpac Trends Private Limited (“Canpac” or the “Company”), to fund the Company’s current expansion plans. Proceeds from the investment will support augmentation of the existing capacities of the Company. This marks the closing of the seventh investment by JM Financial India Fund II.

Canpac is a leading manufacturer of packaging materials like folding cartons, corrugated boxes, paper bags, flexible laminates and luxury boxes. It supplies products to a diverse set of marquee customers across industries. Canpac offers a wide range of products and design solutions catering to multiple needs of its customers, making it a one-stop packaging solutions provider. It is headquartered in Gujarat with large manufacturing plants in Ahmedabad (Gujarat) and Tirupur (Tamil Nadu). The Company was founded in 2010 by Mr. Nilesh Todi, a first generation entrepreneur who has successfully scaled the business over the years.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial said, “We believe that the packaging sector is poised to continue its growth trajectory. Increased consumption of packaged goods, growth in organized retail and e-commerce and increasing premiumization will drive growth for organized packaging players and Canpac is well positioned to capture this growth spectrum. With its in-house manufacturing facilities and R&D, Canpac offers superior quality products, in a timely manner, to its customer base, thus emerging as a one-stop packaging solutions provider for its customers. The fund infusion will help the company scale-up its business and expand its market share.” This is the seventh investment from our Fund II, and is in line with its stated strategy of investing in growth companies in the mid-market space.

Commenting on the fundraise, Mr. Nilesh Todi, Managing Director, Canpac said, “Canpac has emerged as a fast growing packaging player in the country with a key focus on folding carton and corrugated boxes . This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand market share”

Advisors on the deal included Steer Advisors (Investment Banker), Economic Laws Practice (legal advisor to JM Financial India Fund II) and Anoma Legal (legal advisor to Canpac).

About Canpac:

Canpac is a leading printing and packaging company with key product focus on folding cartons, corrugated boxes, paper bags and luxury boxes, supplying to a diverse customer base. More information about Canpac can be found at: http://www.canpac.in/

About JM Financial India Fund II: JM Financial India Fund II, a category II AIF registered with SEBI, is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s leading vending solutions provider), Innovcare Lifesciences Private Limited (a leading nutraceutical player), Isthara Parks Private Limited (a leading coliving, student housing and urban living operator) and BRFL Textiles Private Limited (one of India’s largest fabric manufacturers). For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

The Group is headquartered in Mumbai and has a presence across 518 locations spread across 166 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

Mumbai, February 11^th, 2021 — BRFL Textiles Private Limited (BTPL), housing the largest single-roof fabric processing unit in India, has completed an INR 2.4 Bn equity infusion from a consortium of marquee financial investors led by JM Financial India Fund II (an Indian growth private equity fund), Think Investments (a San Francisco-based investment firm), and others. 

BTPL was recently formed as a separate entity in August 2020 as part of a restructuring process undertaken by Bombay Rayon Fashions Limited, in which it hived-off its Yarn Dyeing & Fabric Processing units located in Tarapur, into BTPL by way of a slump sale on a going concern basis. The Company’s brands, including Bombay Rayon, BRFL, Linen Vogue, Giza Classe, Dickens & Browne and others, are also a part of this transaction. 

BTPL has a strong presence in the B2B and B2C space alongwith long-standing relations with leading brands across the globe, and sells through large garmenters in India who also sell to domestic brands. On the domestic branded sales front, the distribution network of BTPL is spread across its own EBOs, over 100 distributors and over 8000 retailers. 

The equity capital will be utilized primarily to fund the business’ growth and for initial capex to bring the plant upto speed. The new entity, committed to ‘Make in India’, will also look to export its products and to take advantage of the “China plus One” strategy, prompting global firms to diversify their sourcing away from China to India. The strengths of the Indian Textile & Apparels Industry lies in availability of raw material (especially cotton), cost competitiveness and presence of the entire value chain, while its weakness lies in limited availability of organized quality fabric processors of scale. 

Speaking on the fundraise, Mr. Prashant Agarwal, Managing Director at BTPL, said “Over the years, the fabrics from our Tarapur plant have earned the trust of our customers for their superior quality and design innovation & uniqueness. We are confident that now with a fully funded operation with almost no debt, the Tarapur unit housed in BTPL is poised to grow into one of the leading fabric processing houses in India. We shall aim to set new benchmarks in servicing our customers with timely deliveries of new age fabrics and by supplying innovative designs. BTPL is augmenting its talent pool by hiring senior professionals and spending on maintenance capex to ensure full utilisation of its 400,000 meters per day capacity. We shall further invest in technology to ensure increased efficiency of our state-of-the-art machineries at our plant that adheres to all regulatory and business compliances.” 

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs at JM Financial Limited, said, “We believe BTPL has a huge growth potential and the fund infusion will help the company scale-up its business. Increased consumption of branded apparels will drive growth for organized fabric manufacturers, both in domestic and export markets, which can deliver large volumes with consistent quality and within agreed timelines. With its in-house design, R&D and sampling, the company offers differentiated, and superior quality products, in a timely manner, to its customer base. We believe that BTPL will benefit from the ‘Make in India’ push in our country. This is the sixth investment from our Fund II, and is in line with its stated strategy of investing in growth companies in the mid-market space.” 

About BRFL Textiles Private Limited (“BTPL”):

BTPL is engaged in processing a wide range of fabrics at its plant located at Tarapur in Maharastra, India. The Tarapur plant is a multi-fiber fabric processing unit using cotton, linen, giza cotton, viscose, polyester, tencel, modal, lycra, along with their blends. With its annual processing capacity of 144 million meters (400,000 meters per day), the Tarapur plant is the largest single roof fabric processing unit in India adequately supported by its captive power, effluent treatment, RO water and other utilities enabling cost competitiveness. It also has a captive yarn dyeing unit with annual capacity of 10.6 million kg (29 tonnes per day). For further information please refer to www.BombayRayonTextiles.com 

About Think Investments:

Think is a global investment firm based in San Francisco. Think invests across public and private equities with a large part currently invested in Asia and India. Think invests with a multi-year time horizon and its investment philosophy is primarily driven by bottom-up company fundamentals. Think’s lndian private equity investments include Dream11, National Stock Exchange of India, PharmEasy, Experian India and Chaayos. 

About JM Financial India Fund II:

JM Financial India Fund II, a category II AIF registered with SEBI, is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT/ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s largest vending solutions provider), Innovcare Lifesciences Private Limited (a leading nutraceutical player) and Isthara Parks Private Limited (a leading coliving, student housing and urban living operator). For further information please refer to www.jmfpe.com

The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2020.

Summary of Consolidated results FY 21 – Q3 compared to FY 20 – Q3

          (Rs. in Cr)

Summary of Consolidated results FY 21 – 9M compared to FY 20 – 9M

          (Rs. in Cr)

1. Not considering the COVID-19 provision of ~Rs. 62 Cr and adjusting for taxes and non-controlling interests on such provision for the quarter ended December 31, 2020. COVID-19 provision amount is unaudited and based on management estimates.
2. Not considering the COVID-19 provision of ~Rs. 185 Cr and adjusting for taxes and non-controlling interests on such provision for the nine months ended December 31, 2020. COVID-19 provision amount is unaudited and based on management estimates.

The earnings per share for the nine months ended December 31, 2020 is Rs. 4.48. The consolidated net worth* as at December 31, 2020 stands at Rs. 6,750 Cr and the gross debt equity (equity of Rs.6,750 Cr + non-controlling interest of Rs. 2,564 Cr) ratio is 1.11 times* and net debt equity of 0.72 times* (post reducing cash and cash equivalents of Rs. 3,716 Cr). The book value per share is Rs. 70.88.

Our total loan book** stood at Rs. ­­­10,407 crore as of December 31, 2020 compared to Rs. 12,662 crore as of December 31, 2019. Gross NPA and Net NPA stood at 1.79% and 1.16% respectively as of December 31, 2020 compared to 1.56% and 1.35% respectively as of December 31, 2019. Proforma Gross NPA and Net NPA as of December 31, 2020 without considering effect of the interim order of Honourable Supreme Court of not classifying loans as NPA after August 31, 2020 would have been 3.57% and 2.04% respectively. We have made additional gross provisions of Rs. 185 Cr^# on account of the uncertainties around COVID-19 for the nine months ended December 31, 2020, thereby taking the total provisions to Rs. 360 Cr^# on account of the pandemic. During the quarter, we offered resolution plan to its customers pursuant to the RBI resolution framework for COVID-19 related stress dated August 6, 2020. The aggregate loan book of these accounts stood at Rs. 62 Cr (0.59% of loan book as of December 31, 2020)

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# Unaudited and based on management estimates

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“The economy has rebounded quite strongly from the pandemic as compared to the first two quarters of this financial year. The economy is showing strong signs of recovery, albeit some part of the recovery can be attributed to pent-up demand. It will be very interesting to watch this trend of recovery in the current and next few quarters.

In our IWS businesses, we have a very strong pipeline of investment banking transactions. We are witnessing strong traction in the institutional and non-institutional equities businesses. The equity AUA for our private wealth management business has seen robust growth. The elite wealth management and the institutional fixed income businesses are scaling up. The internal synergies amongst the various businesses are yielding strong results. We believe the IWS business is well positioned to capitalize on the multi-decade opportunity in financial markets.

On our mortgage lending business, the sales data for the real estate sector over the last few months has been extremely encouraging and we expect our escrow cash flows to remain strong. We believe that the asset quality impact on our loan book is transient in nature and we have not provided one-time restructuring benefit to any borrower in our wholesale mortgage segment. We believe that we have peaked out in terms of the provisions made on our existing loan book. Our wholesale mortgage loans are fully secured with robust security covers. Our loss given defaults are likely to remain low. Our teams have started evaluating fresh proposals as we look to build a pipeline for gradually increasing the long term loan book.

On the back of recovery of economy post COVID-19 and opening up of NCLTs, our distressed credit business also witnessed few resolutions, adding to the overall profitability of the Group for the quarter.

We have emerged stronger from COVID-19 as is reflected in our strong balance sheet with adequate provisions, almost all time low leverage levels and extremely strong liquidity buffers. We believe our diversified businesses are well positioned to benefit from the post COVID-19 recovery. The key domestic events to watch out include the pace of vaccination and the Union Budget 2021.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  The IWS segment continued the momentum during the quarter. The pipeline for our investment banking transactions continues to remain healthy.

   

  During the quarter, our completed investment banking transactions include:

• Book Running Lead Manager (“BRLM”) to the Initial Public Offering (“IPO”) of Equity Shares of UTI Asset Management Company Limited (~Rs. 2,160 Cr), Burger King India Limited (~Rs. 1,067 Cr), Equitas Small Finance Bank Limited (~Rs. 518 Cr) and Mazagon Dock Shipbuilders Limited (~Rs. 444 Cr)
• BRLM to the Qualified Institutions Placement of Equity Shares of Canara Bank (~Rs. 2,000 Cr)
• Lead Manager to the Public Issue of Non-Convertible Debentures (“NCDs”) of Muthoot Finance Limited (~Rs. 2,000 Cr)
• Seller’s Broker to the Offer for Sale of Equity Shares of Sumitomo Chemical India Limited (~Rs. 475 Cr)
• Lead Manager to the Rights Issue of Equity Shares of Shoppers Stop Limited (~Rs. 300 Cr)
• Sole Manager to the Buyback of Equity Shares of JK Paper Limited (~Rs. 100 Cr)
• Exclusive Financial Advisor to International Cargo Terminals & Infrastructure Private Limited (ICTIPL) on fund raise from Bain Capital
• Financial Advisor to India Grid Trust for acquisition of Jhajjar KT Transco from Kalpataru Power Transmission and Techno Electric & Engineering Company
• Exclusive Financial Advisor in relation to the open offer to the shareholders of Accelya Solutions India by Aurora UK Bidco together with entities belonging to the Vista Equity Partners Group

   

  During the quarter, we acted as an arranger to the Private Placement of:

• NCDs of diversified public sector companies like IRFC, RECL, IOCL, HPCL, MRPL, FCI, etc. (~Rs. 37,700 Cr)
• NCDs in the form of Basel III compliant Additional Tier I bonds of Union Bank of India, Bank of Baroda and Indian Bank. (~Rs. 2,400 Cr)
• NCDs in the form of Basel III compliant Tier II bonds of Union Bank of India. (~Rs. 1,000 Cr)
• Subordinated Debt of NBFCs like Tata Capital Financial Services Limited and Sundaram Finance Limited (~Rs. 225 Cr)

   

  The AUA of our private wealth management business stood at Rs. 56,757 Cr (excluding custody assets) as on December 31, 2020 as compared to Rs. 46,886 Cr as on December 31, 2019 and Rs. 54,015 Cr as on September 30, 2020. The AUA of our Independent Financial Distribution (IFD) business stood at Rs. 15,731 Cr as on December 31, 2020 as compared to Rs. 13,161 Cr as on December 31, 2019 and Rs. 14,993 Cr as on September 30, 2020.

  During the quarter, the average daily trading volume stood at Rs. 11,119 Cr.

   

  During the quarter, we also funded 7 public issues (including 1 NCD issue) aggregating to a funding of ~Rs. 25,246 Cr.

   

   

  • Mortgage Lending

    The total mortgage lending book- (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,355 Cr as at December 31, 2020. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.

     

    The highlights of the quarter in respect of the wholesale mortgage lending are as under:

• SMA2 numbers increased from 3.42% as of September 2020 of the portfolio to 8.04% as of December 2020 of the portfolio, During this period the loan book has declined from Rs. 7,208 Cr in September 2020 to Rs. 6,993 Cr as of December 2020
• Debt to equity stood at 1.26x and net debt to equity at 0.92x.

                                                     

  We continue to be in a challenging environment accelerated by the COVID-19 crisis and the lockdown that has been initiated since mid-March 2020. However various efforts have been made by the central and some of the state governments to encourage the demand in the residential sector. This had led to an increase in sales across geographies since August 2020 onwards. The last quarter has only seen the sales numbers strengthen and we have seen significant momentum in sales and collections during this period. Most of this demand is has come in from end users and we see the momentum continuing in the near future. This quarter also witnessed good sales in the luxury space which also signals towards the positive sentiments of buyers towards real estate purchase decisions. Given this scenario we expect a turnaround in the sector and will also witness fresh money by way of debt and equity coming into the sector in the next few quarters.

   

  The consolidation process in the sector is playing out rapidly and we continue to witness large players gaining more market share. The markets seem to have played out positively in the last six months in line with our expectations and we are keeping ourselves prepared to make the most of the turn in the cycle which we are witnessing right now.

   

   

  • Distressed Credit

Until December 31, 2020, we have acquired total outstanding dues of Rs. 60,590 Cr at a gross consideration of Rs. 17,130 Cr. Security Receipts worth ~Rs. 559 Cr were redeemed during the quarter. The outstanding Security Receipts stood at Rs. 10,915 Cr as on December 31, 2020 as compared to Rs. 11,429 Cr as on September 30, 2020. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 2,923 Cr as on December 31, 2020 as compared to Rs. 3,244 Cr as on September 30, 2020. During the quarter, we closed 2 deals as a part of debt aggregation of one large account. Higher focus on recoveries yielded results and recoveries during quarter were much higher at ~Rs. 751 Cr as against ~Rs. 120 Cr in previous quarter. Higher recoveries were affected by implementation of approved resolution plans by NCLT, successful sale of assets under SARFAESI and settlements. Our focus continues to be on recoveries and resolution with a cautious approach towards acquisitions.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2020 stood at Rs. 3,700 Cr; comprising of Rs. 815 Cr in equity schemes (including hybrid schemes) and Rs. 2,885 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2020 stood at Rs. 4,182 Cr; comprising of Rs. 905 Cr in equity schemes (including hybrid schemes) and Rs. 3,277 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating to Rs. 159 Crore under JM Financial Yield Enhancer (Distressed Opportunity) Fund I.

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on December 31, 2020 our long term borrowing as a proportion of total borrowing stood at approximately 86%. Borrowing through Commercial paper (CP) consisted approximately 9% of the total borrowing as on December 31, 2020. These CP’s were utilised primarily towards the short term liquid assets.

Awards & Recognitions

• BSE Awards 2020 - JM Financial Services has been recognized by BSE Ltd., amongst the Top Performers in Primary Market Segment (Equity – IPO/FPO Bids - Members)

-ends-

The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management which includes the mutual fund business. 

As of December 31, 2020, the consolidated loan book stood at ~Rs. 104.1 BN, distressed credit business AUM at ~Rs. 109.1 BN, wealth management AUA at ~Rs. 567.6 BN, mutual fund AAUM at ~Rs. 37.0 BN.

The Group is headquartered in Mumbai and has a presence across 518 locations spread across 166 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, October 27, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2020. 

Summary of Consolidated results FY 21 – Q2 compared to FY 20 – Q2

          (Rs. in Cr)

Summary of Consolidated results FY 21 – H1 compared to FY 20 – H1

          (Rs. in Cr)

1. Not considering the COVID-19 provision of ~Rs. 57 Cr and adjusting for taxes and non-controlling interests on such provision for the quarter ended September 30, 2020. COVID-19 provision amount is unaudited and based on management estimates.
2. Not considering the COVID-19 provision of ~Rs. 123 Cr and adjusting for taxes and non-controlling interests on such provision for the half year ended September 30, 2020. COVID-19 provision amount is unaudited and based on management estimates. 

The earnings per share for the half year ended September 30, 2020 is Rs. 2.56. The consolidated net worth* as at September 30, 2020 stands at Rs. 6,568 Cr and the gross debt equity (equity + non-controlling interest of Rs. 2,494 Cr) ratio is 1.20 times* and net debt equity of 0.89 times* (post reducing cash and cash equivalents of Rs. 2,831 Cr). The book value per share is Rs. 68.97. Our total loan book** stood at Rs. ­­­11,386 crore as of September 30, 2020 compared to Rs. 13,810 crore as of September 30, 2019. Gross NPA and Net NPA stood at 1.69% and 1.13% respectively as of September 30, 2020 compared to 1.27% and 1.11% respectively as of September 30, 2019. We have made additional gross provisions of Rs. 123 Cr^# on account of the uncertainties around COVID-19 for the half year ended September 30, 2020, thereby taking the total provisions to Rs. 298 Cr^# on account of the pandemic.  

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# Unaudited and based on management estimates 

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said, 

“The headwinds due to the COVID-19 induced economic disruptions continue to impact the group’s businesses. Despite the headwinds, our Investment banking, wealth management and securities business has shown resilience by demonstrating strong performance. We continue to maintain liquidity buffers and healthy leverage ratios. The cash and cash equivalent as on September 30, 2020 stood at Rs. 2,831 Crore and our net debt-equity ratio stands at 0.89x. 

We have made gross provisions of Rs. 298 Crore on our balance sheet to deal with the uncertainties on account of COVID-19. Looking ahead, we continue to monitor the situation very closely. We are committed to work with our clients to steer through the uncertain times and leverage the emerging market opportunities backed by our well-capitalised and diversified business model.” 

Business Update 

• Investment banking, Wealth Management and Securities business (IWS)

  The IWS segment gained traction during the quarter. The pipeline for our investment banking transactions continues to remain healthy.During the quarter, our completed investment banking transactions include

  During the quarter, our completed investment banking transactions include

  • Book Running Lead Manager (“BRLM”) to the Qualified Institutions Placement (QIP) of Equity Shares of ICICI Bank Limited (~Rs. 15,000 Cr), QIP of Equity Shares, Equity Warrants and Non-Convertible Debentures of Housing Development Finance Corporation Limited (~Rs. 14,000 Cr) and QIP of Equity Shares of Amber Enterprises India Limited (~Rs. 400 Cr)
  • Bookrunner to the Block trade of Equity Shares of Bandhan Bank Limited (~Rs. 10,600 Cr)
  • Manager to the Voluntary Delisting of Equity Shares of Hexaware Technologies Limited (~Rs. 4,146 Cr)
  • BRLM to the Initial Public Offer of Units of Mindspace Business Parks REIT (~Rs. 4,500 Cr) and advisor to Private Placement of Non-Convertible Debentures (~Rs. 250 Cr)
  • Sole Selling Broker to the Offer for Sale of Equity Shares of GMM Pfaudler Limited (~Rs. 1,028 Cr) and Sumitomo Chemical India Limited (~Rs. 284 Cr)
  • Exclusive Financial Advisor to the promoters of Sunrise Foods for sale of 100% shareholding to ITC
  • Exclusive Investment Banker and Financial Advisor to Escorts on acquisition of stake by Kubota Corporation, Japan in Escorts
  • Exclusive Financial Advisor and Manager to Open Offer to the Public Shareholders of HealthCare Global Enterprises
  • Financial and Transaction Advisor to IL&FS on sale of its stake in Schoolnet India to Falafal Technologies Private Limited
  • Arranger to the Private Placement of Non-Convertible Debentures of diversified public sector companies like BPCL, IRFC, RECL, BORL, PFC, CPCL, NTPC, NLC, ONGC, IOCL, HUDCO, HPCL, NHAI (~Rs. 30,000 Cr)
  • Arranger to Private Placement of Non-Convertible Debenture maiden Government of India Guaranteed issue of Bharat Sanchar Nigam Limited (~Rs. 8,500 Cr)
  • Arranger to Private Placement of Non-Convertible Debentures of L&T Infrastructure Finance Company Limited (~Rs. 1,300 Cr)

  The AUA of our private wealth management business stood at Rs. 54,015 Cr (excluding custody assets) as on September 30, 2020 as compared to Rs. 46,818 Cr as on September 30, 2019 and Rs. 47,579 Cr as on June 30, 2020.

  During the quarter, the average daily trading volume stood at Rs. 12,582 Cr. 

  During the quarter, we also funded 7 public issues (including 1 FPO issue) wherein the aggregate amount of funding was around Rs. 21,469 Cr.

  ​

• Mortgage Lending

  The total mortgage lending book- (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,526 Cr as at September 30, 2020. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.

  - 

  The highlights of the quarter in respect of the wholesale mortgage lending are as under:

  • SMA2 numbers increased from 1.82% of the portfolio to 3.42% of the portfolio.
  • Debt to equity stood at 1.29x and net debt to equity at 1.02x. 

  We continue to be in a challenging environment accelerated by the COVID-19 crisis and the lockdown that has been initiated since mid-March 2020. However various efforts have been made by the central and some of the state governments to encourage the demand in the residential sector. This coupled with very low interest rates on home loans has ensured that the sales numbers in various geographies in the months of August and September 2020 have been very encouraging. We believe that if the numbers continue to be at these levels the sector can witness a turnaround in the beginning of the next calendar year. Having said that, sales are still happening mainly in the low and middle segment and high end inventory continues to be under pressure.

   

  Most geographies are inching towards normalcy as far as the movement of labour is concerned. We continue to believe that completed projects will sell faster as there will still be end user demand looking for value deals. We are also seeing movement in acquisitions of new land parcels/ projects as demand starts getting established and land prices begin to look more attractive.

   

  The credit availability in the sector continues to be a challenge, however various banks are looking at different products to fund completed inventory at attractive rates to help developers bridge the timing mismatch. The consolidation process in the sector is underway and we are witnessing large players gaining more market share. We are in a very defining period for the sector and believe that the next six months will be very crucial to set the tone for the sector in the coming years.

• Distressed Credit 

        Until September 30, 2020, we have acquired total outstanding dues of Rs. 60,401 Crat a gross consideration of Rs. 17,079 Cr. Security Receipts worth ~Rs. 22 Cr were redeemed during the quarter. The outstanding Security Receipts stood at Rs. 11,429 Cr as on September 30, 2020 as compared to Rs. 11,441 Cr as on June 30, 2020. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs.3,244 Cr as on September 30, 2020 as compared to Rs. 2,982 Cr as on June 30, 2020. Even in this quarter, the focus was on recoveries however the COVID-19 pandemic has cast a shadow over the recoveries. NCLTs have gradually started hearing matters however due to the current situation the resolution is taking more time than usual. Recoveries from SARFAESI have started to pick up in September and we expect more recoveries in the coming quarters. During the quarter, resolution plans for 3 companies were approved by NCLT and we expect approval of few more companies in the coming quarters. 

• Asset Management 

The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2020 stood at Rs. 4,182 Cr; comprising of Rs. 905 Cr in equity schemes (including hybrid schemes) and Rs. 3,277 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2020 stood at Rs. 4,049 Cr; comprising of Rs. 964 Cr in equity schemes (including hybrid schemes) and Rs. 3,085 Cr in debt schemes (including liquid scheme). In addition, we have commitments aggregating to Rs. 159 Crore under JM Financial Yield Enhancer (Distressed Opportunity) Fund I.

 Borrowing Profile 

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on September 30, 2020 our long term borrowing as a proportion of total borrowing stood at approximately 83%. Borrowing through Commercial paper (CP) consisted approximately 8% of the total borrowing as on September 30, 2020. These CP’s were utilised primarily towards the short term liquid assets. 

Awards & Recognitions 

• JM Financial Limited received the 18^th FICCI CSR Award for the CSR Healthcare Project implemented by JM Financial Foundation in the Dumri Block-Giridih district, Jharkhand.

-ends-

The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management which includes the mutual fund business.  

As of September 30, 2020, the consolidated loan book stood at ~Rs. 113.9 BN, distressed credit business AUM at ~Rs. 114.3 BN, wealth management AUA at ~Rs. 540.2 BN, mutual fund AAUM at ~Rs. 41.8 BN. 

The Group is headquartered in Mumbai and has a presence across 492 locations spread across 166 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE. 

For more information, log on to www.jmfl.com or contact: 

Forward - Looking statements 

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, June 24, 2020: JM Financial Private Equity (the “Fund”) has announced that it has completed its proposed investment of INR 400 mn in Coimbatore based co-living operator, Isthara Parks Private Limited (“Isthara” or the “Company”). The investment was completed in two tranches between July 2019 and June 2020.

Commenting on the investment Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs said, “We did extensive research on the co-living sector and identified Isthara as a potential leader in the space. The Isthara management brings to the table deep domain knowledge in hospitality, IT & real estate and proven execution capability. The Fund focuses on backing strong entrepreneurs with disruptive ideas combined with on-ground operational excellence.”

Having expanded at a rapid pace since the first tranche investment, the Company met the targets laid out for additional funding ahead of anticipated timelines. The second tranche infusion in Isthara will be utilized by the Company to add another 4,000-5,000 beds under executive housing in addition to around 5,000 beds under student housing by the end of the current financial year.

Commenting on the investment and the Company’s plan going forward, Mr. Gilbert James, Managing Director, Isthara said, “in addition to growing on our own, we are scouting for good acquisition opportunities to invest in at reasonable valuations during these times.”

In July 2019, the Company had around 2,300 operational beds in Hyderabad and Bangalore, and another 700 under fit-out. In less than a year, Isthara has expanded operations additionally to NCR and Coimbatore and more than doubled in size, with close to 6,000 operational beds, and strengthened its management team and technology backbone. In the process, the Company became the first co-living operator in India to manage an on-campus student housing facility, with ~700 beds under management in Coimbatore.

The Fund identified Isthara as a promising early-stage investment opportunity in the nascent but fast-growing organized co-living sector in early 2019 and decided to invest in Isthara to support its expansion plans in existing and new markets.

JM Financial India Fund II is a sector-agnostic growth-capital private equity fund set up by JM Financial which invests in high-growth, small to mid-market companies in financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors.

Isthara provides fully-furnished shared-living accommodation for working professionals and students, along with a host of amenities such as daily meals, WiFi internet, gym, laundry and housekeeping service, etc. Moreover, the Company organises community-focused events on a regular basis to promote co-living amongst residents.

About Isthara:

Isthara operates co-living campuses offering fully-serviced accommodation to young working professionals and students, together with a comprehensive suite of services including meals, WiFi internet, housekeeping service, laundry service, etc. More information about Isthara can be found at: http://www.isthara.com/

About JM Financial India Fund II:  

JM Financial India Fund II , is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s largest vending solutions provider) and Innovcare Lifesciences Private Limited (a leading nutraceutical player).  For further information please refer to: https://www.jmfpe.com/

About JM Financial Group:

We are an established financial services group providing a range of financial services. The Group’s primary business verticals includes (a) Investment banking, wealth management and securities business (IWS) (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (c) Distressed credit which includes the Asset Reconstruction business; and (d) Asset Management which includes the Mutual Fund business.

As of March 31, 2020, the consolidated loan book stood at ~Rs. 115.3 BN, distressed credit business AUM at ~Rs. 114.9 BN, wealth management AUM at ~Rs. 448.8 BN, mutual fund AUM at ~Rs. 65.0 BN.

The equity shares of JM Financial Limited are listed in India on the BSE and NSE. For more information, log on to www.jmfl.com or contact:

Manali Pilankar

Corporate Communications

Tel.: +91 22 6630 3475

Mr. P S Jayakumar, a veteran in financial services, has been appointed by the Board as an Independent Director effective July 30, 2020

Mumbai, July 30, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the first quarter ended June 30, 2020.

Summary of Consolidated results FY 21 – Q1 compared to FY 20 – Q1

          (Rs. in Cr)

1. Not considering the COVID-19 provision of ~Rs. 66 Cr and adjusting for taxes and non-controlling interests on such provision for the quarter ended June 30, 2020. COVID-19 provision amount is unaudited and based on management estimates.

The earnings per share for the quarter ended June 30, 2020 is Rs. 1.01. The consolidated net worth* as at June 30, 2020 stands at Rs. 6,445 Cr and the gross debt equity (equity + non-controlling interest of Rs. 2,453 Cr) ratio is 1.17 times* and net debt equity of 0.79 times* (post reducing cash and cash equivalents of Rs. 3,394 Cr). The book value per share is Rs. 67.71. Our total loan book** stood at Rs. ­­­10,833 crore as of June 30, 2020 compared to Rs. 13,926 crore as of June 30, 2019. Gross NPA and Net NPA stood at 1.80% and 1.22% respectively as of June 30, 2020 compared to 0.90% and 0.80% respectively as of June 30, 2019. We have made additional gross provisions of Rs. 66 Cr^# on account of the uncertainties around COVID-19 for the quarter ended June 30, 2020, thereby taking the total provisions to Rs. 241 Cr^# on account of the pandemic.  

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds and excludes borrowings for episodic financing

**Loan book does not include episodic financing book

# unaudited and based on management estimates

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“The headwinds due to the COVID-19 induced economic disruptions continue to impact the group’s businesses. During these challenging times, we are maintaining liquidity buffers and healthy leverage ratios. The cash and cash equivalent as on June 30, 2020 stood at Rs. 3,394 Crore and our net debt-equity ratio stands at 0.79x. In June 2020, we successfully concluded our QIP issue of Rs. 770 Crore which further helped strengthen our balance sheet amid the COVID-19 uncertainties. We are intensifying our efforts to steer our businesses through these uncertain times to ensure we continue to serve our clients in the best possible way”

Commenting on the appointment of Mr. P S Jayakumar on the Board of the Company, Mr. Vishal Kampani said,

“The Company has further strengthened its board by inducting Mr. Jayakumar as an independent director and we welcome Mr. Jayakumar to the board of JM Financial Limited.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

  During the quarter, some of our completed investment banking transactions were as follows:

• Left Lead Global Coordinator & Lead Manager to the Rights Issue of Reliance Industries Limited (~Rs. 53,124 Cr)
• Sole Manager to the Buyback of equity shares of NIIT Technologies Limited (~Rs. 338 Cr)
• Exclusive Financial Advisor to L&T Finance Holdings for sale of 100% shareholding in L&T Capital Markets to IIFL Wealth Group
• Arranger to the Private Placement of Non-Convertible Debentures of diversified public sector companies like IREDA, REC, PFC, NHAI, IRFC, NEEPCO and EXIM Bank (~Rs. 19,298 Cr)

   

  The AUA of our wealth management business stood at Rs. 47,579 Cr (excluding custody assets) as on June 30, 2020 as compared to Rs. 43,038 Cr as on June 30, 2019 and Rs. 44,883 Cr as on March 31, 2020.

  During the quarter, the average daily trading volume stood at Rs. 11,175 Cr.

• Mortgage Lending

  The total mortgage lending book* (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,428 Cr as at June 30, 2020. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.

  *excluding episodic financing book

  The highlights of the quarter in respect of the wholesale mortgage lending are as under:

• Our SMA2 numbers decreased from 2.10% of the portfolio to 1.82% of the portfolio.
• Our debt equity stood at 1.43x and net debt equity at 1.18x.

   

  We continue to be in a challenging environment accelerated by the COVID-19 crisis and the lockdown that has been initiated since mid-March 2020. We believe the residential sales will continue to be under pressure due to uncertainty among prospective buyers about the economy and the path to recovery. Commercial real estate and retail sectors will also be impacted due to the lockdown. Most geographies have witnessed commencement of construction activities albeit at a slow pace. After the easing of the lockdown we had witnessed increase in footfalls to sites by prospective buyers. However repeated lockdowns in some geographies has slowed down that process again significantly. The sites continue to struggle with limited availability of labour and lack of movement of material.

  We continue to believe that completed projects will sell faster as there will still be end user demand looking for value deals. New launches and acquisitions will be deferred thus reducing the gap between the supply and demand situations. There have been some positive actions by the RBI and RERA to provide some relief to the struggling sector.

  Having said that, these conditions will continue to affect the liquidity in the sector as credit availability will be limited. The current scenario will expedite the consolidation in the sector which would lead to larger players acquiring more market share. We will witness reduction of interest rates for home loans which coupled with attractive prices might lead to end user demand coming back to the residential space. However, the next six to twelve months continue to be uncertain in light of the current lockdown situation and uncertainty about the COVID-19 crisis.

  We would remain cautious in our underwriting of new transactions and would continue to support our existing clients to complete their respective ongoing projects.

• Distressed Credit

Until June 30, 2020, we have acquired total outstanding dues of Rs. 60,363 Cr at a gross consideration of Rs. 17,069 Cr. Security Receipts worth ~Rs. 48 Cr were redeemed during the quarter. The outstanding Security Receipts stood at Rs. 11,441 Cr as on June 30, 2020 as compared to Rs. 11,489 Cr as on March 31, 2020. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 2,982 Cr as on June 30, 2020 as compared to Rs. 3,012 Cr as on March 31, 2020. This quarter, the focus was on recoveries however the COVID-19 pandemic has cast a shadow over the recoveries. The lock down has also impacted the NCLT processes and consequently our recoveries have been delayed further. The delays in recoveries have increased the carrying costs of the assets under resolution and thereby impacting the returns from these assets.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2020 stood at Rs. 4,049 Cr; comprising of Rs. 964 Cr in equity schemes (including hybrid schemes) and Rs. 3,085 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2020 stood at Rs. 6,109 Cr; comprising of Rs. 3,285 Cr in equity schemes (including hybrid schemes) and Rs. 2,824 Cr in debt schemes (including liquid scheme).

JM Financial Credit Alternatives, our credit alternatives arm, completed first close of its maiden “JM Financial Yield Enhancer (Distressed Opportunity) Fund I” with commitments aggregating Rs. 159 Crore from HNIs, family offices and institutions.

Borrowing Profile

We continued our focus on diversifying our sources and maturities for our borrowing profile. As on Jun 30, 2020 our long term borrowing as a proportion of total borrowing* stood at approximately 90%. Borrowing through Commercial paper (CP) consisted approximately 6% of the total borrowing* as on Jun 30, 2020. These CP’s were utilised mainly towards the short term liquid assets.

* excludes borrowings for episodic financing

Awards & Recognitions

• JM Financial Asset Management Limited, JM Financial Limited (Institutional Businesses), JM Financial Products Limited (Dwello), JM Financial Home Loans Limited and JM Financial Services Limited accredited as a ‘Great Place to Work-Certified™’ by The Great Place to Work Institute
• JM Financial Home Loans Limited recognized as India's Best Workplaces in BFSI 2020 and Ranked 21st among India’s Top 50 Great Mid-Size Workplaces 2020 by The Great Place to Work Institute
• JM Financial Services Limited recognized as ‘India's Best Workplaces in Investment Industry 2020’ by The Great Place to Work Institute

-ends-

 The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management which includes the mutual fund business. 

As of June 30, 2020, the consolidated loan book stood at ~Rs. 108.3 BN, distressed credit business AUM at ~Rs. 114.4 BN, wealth management AUA at ~Rs. 475.8 BN, mutual fund AAUM at ~Rs. 40.5 BN.

The Group is headquartered in Mumbai and has a presence across 456 locations spread across 154 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, 15 June, 2020: JM Financial Limited (“Company”) announced the successful closure of its Qualified Institutions Placement (“QIP”). The Company has issued and allotted 11 crore equity shares of the face value of Re.1.0 each to qualified institutional buyers at an issue price of Rs.70.0 each (including a securities premium of Rs. 69.0 per equity share), aggregating to Rs. 770 crore.

Speaking on the announcement, Mr. Vishal Kampani – Managing Director, JM Financial Group said “We are pleased with the response to our equity fund raise through our QIP. The equity fund raise further strengthens our balance sheet amid the uncertainties related to Covid-19 by augmenting our existing cash and cash equivalents, which stood at Rs.3,412 crore as of March 31, 2020. The capital raise also provides us the ability to leverage the capital to tap into the growth opportunities at an appropriate time.”

The issue was subscribed by global and domestic investors.

About JM Financial Group

JM Financial is an established financial services group providing a range of financial services. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) (b) Mortgage Lending which includes wholesale mortgage lending and retail mortgage lending (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.  The Group is headquartered in Mumbai. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Mumbai, June 04, 2020: JM Financial Credit Alternatives, the credit alternatives arm of the JM Financial Group, has completed first close of its maiden “JM Financial Yield Enhancer (Distressed Opportunity) Fund I” with commitments aggregating at Rs. 160 crore from HNIs, family offices and institutions.

The JM Financial Yield Enhancer (Distressed Opportunity) Fund I is a Category II AIF, and was set up in July last year after receiving requisite approval from SEBI. It is a sector agnostic fund with its core investment strategy aligned with the macro-economic scenario. The fund will invest to build a portfolio with downside protection.

Speaking on the announcement, Mr. Mukund Kannappan – Chief Investment Officer, Credit AIF said “We are pleased with the response to our Distressed Opportunity Fund. The first close is extremely important to us, as it demonstrates the confidence of the investors in our consistent strategy and credentials in reviving stressed assets. Our core investment strategy focuses on investing in enterprises that are going through various stages of stress at distress valuations as well as address the source of stress and help the enterprise revive and exit at fair market valuations.

The investment opportunities in distressed asset space in India are growing. We believe that distressed assets have become one of the most preferred asset classes for the domestic and global investors. The stressed asset funds follow the investment mandate of ploughing money into companies in financial distress and turning them around.

About JM Financial Group

We are an established financial services group providing a range of financial services. The Group’s primary business verticals includes (a) Investment banking, wealth management and securities business (IWS) (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (c) Distressed credit which includes the Asset Reconstruction business; and (d) Asset Management which includes the Mutual Fund business.

As of March 31, 2020, the consolidated loan book stood at ~Rs. 115.3 BN, distressed credit business AUM at ~Rs. 114.9 BN, wealth management AUM at ~Rs. 448.8 BN, mutual fund AAUM at ~Rs. 65.0 BN.

The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

JM Financial has made gross provisions of Rs.175 Crore to deal with the uncertainties on account of COVID-19.

Mumbai, May 06, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the audited financial results for the fourth quarter and year ended March 31, 2020.

The Board of Directors have recommended a dividend of Re. 0.20 per share of the face value of Re.1/- each.  The lower dividend is on account of uncertainties of COVID-19.

Summary of Consolidated results FY 20 – Q4 compared to FY 19 – Q4

            (Rs. in Cr)

Summary of Consolidated results FY 20 compared to FY 19

            (Rs. in Cr)

1. Not considering the COVID-19 impact (net of tax and non-controlling interest) amounting to~ Rs. 76.10 Cr for quarter and year ended March 31, 2020.

The earnings per share for the year ended March 31, 2020 is Rs. 6.48. The consolidated net worth* as at March 31, 2020 stands at Rs. 5,586 Cr and the gross debt equity (equity + non-controlling interest of Rs. 2,407 Cr) ratio is 1.47 times* and net debt equity of 1.04 times* (post reducing cash and cash equivalents of Rs. 3,412 Cr). The book value per share is Rs. 66.41. Our total loan book stood at Rs. ­­­11,531 crore as of March 31, 2020 compared to Rs. 14,107 crore as of March 31, 2019. Gross NPA and Net NPA stood at 1.65% and 1.13% respectively as of March 31, 2020 compared to 0.68% and 0.55% respectively as of March 31, 2019.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds

For the quarter, the financial results have been prepared taking into estimation the impact of COVID-19. The major impact of COVID-19 in the financial statements is captured in expected credit loss and fair value of investments. The Group has taken gross provisions (including fair value loss) of Rs.175 crore on account of COVID-19.

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“The last 18 months have been challenging for the financial services and especially for the NBFC sector due to the stressed credit environment and slow economic growth. The situation has further worsened on account of the COVID-19 pandemic and subsequent lockdowns across the country. We have made gross provisions of Rs.175 crore on our balance sheet on account of the uncertainties around the impact of COVID-19.

We have been able to demonstrate resilience by keeping strong liquidity buffers and healthy leverage ratios. The cash and cash equivalent as on March 31, 2020 stood at Rs. 3,412 Crore and our net debt-equity ratio stands at 1.04x which is amongst the lowest in financial services space.

We continue to closely monitor the external environment and will remain prudent in our business planning over the next few quarters as the impact of the pandemic is uncertain. We are focused on building strong resilience so that we can keep moving, ahead of the downturn.

During these unprecedented crisis, JM Financial Group has committed Rs. 30 Crore towards COVID-19 relief measures. The group stands together with the country to combat this crisis and with a collaborative approach, we will be able to overcome the pandemic.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  During the quarter, some of our completed investment banking transactions were as follows:

  • Lead Manager to the Qualified Institutions Placement of Avenue Supermarts Limited (~Rs. 4,098 Cr)
  • Selling Broker to the Offer for Sale of equity shares of Avenue Supermarts Limited (~Rs. 3,428 Cr)
  • Lead Manager to the issue of Non-Convertible Debentures of L&T Finance Limited (~Rs. 1,408 Cr), Adani Ports And Special Economic Zone Limited (~Rs. 125 Cr) and JM Financial Products Limited (~Rs. 125 Cr).
  • Financial and Transaction Advisor to IL&FS on sale of stake in seven wind energy units to ORIX Corporation of Japan.
  • Financial Advisor to Diageo plc for acquisition of further stake in United Spirits by Relay B.V.
  • Exclusive Financial Advisor and Manager to the Open Offer by Adani Logistics Limited to the equity shareholders of Snowman Logistics Limited.
  • Independent valuer to provide fair market value of shares of Ammann India P Ltd and issue valuation report to AEML and Ammann Group.
  • Exclusive Financial Advisor to VVDN Technologies on fund raise from Motitlal Oswal Private Equity (~Rs 250 Cr)
  • Exclusive Financial Advisor to TVS Supply Chain Solutions and DRSR Logistics on fund raise from Gateway Partners (~Rs 700 Cr)

     

    The AUM/AUA of our wealth management business stood at Rs. 44,883 Cr (excluding custody assets) as on March 31, 2020 as compared to Rs. 41,886 Cr as on March 31, 2019 and Rs. 46,886 Cr as on December 31, 2019.

    During the quarter, the average daily trading volume stood at Rs. 13,894 Cr.

    During the quarter, in IPO financing business, we funded 2 public issues (including 1 ETF issue) wherein the aggregate amount of funding was around Rs. 8,733 Cr.

                                                      

• Mortgage Lending

  The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 7,651 Cr as March 31, 2020. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. After investing in the right talent, technology and processes, our retail mortgage lending business is all set to build its niche and achieve scale. During the quarter, our retail mortgage lending announced the co-lending arrangement with Bank of Baroda to further boost the momentum.

  The highlights of the last quarter in respect of the wholesale mortgage lending are as under:

  • Our SMA2 numbers increased from 0.73% of the portfolio to 2.10% of the portfolio. We continue our involvement with our borrowers to identify early signs of stress and find solutions.
  • Our debt equity stood at 1.47x and net debt equity at 1.19x.

     

    We continue to be in a challenging environment accelerated by the COVID-19 crisis and the lockdown that has been initiated since mid-March 2020. We believe the residential sales will continue to be under pressure due to uncertainty among prospective buyers about the economy and the path to recovery. Commercial real estate and retail sectors will also been impacted due to the lockdown. Post the lockdown is lifted the sector will have to deal with issues of limited labour, low demand and lack of credit availability. We continue to believe that completed projects will sell faster as there will still be end user demand looking for value deals. New launches and acquisitions will be deferred thus reducing the gap between the supply and demand situations. There have been some positive actions by the RBI and RERA to provide some relief to the struggling sector. 

    Having said that, these conditions will continue to affect the liquidity in the sector as credit availability will be limited. The current scenario will expedite the consolidation in the sector which would lead to larger players acquiring more market share.  We will witness reduction of interest rates for home loans which coupled with attractive prices might lead to end user demand coming back to the residential space. However, the next six to twelve months continue to be uncertain in light of the current lockdown situation and uncertainty about the COVID-19 crisis. 

    We would remain cautious in our underwriting of new transactions and would continue to support our existing clients to provide financial closures for ongoing projects. 

     

• Distressed Credit

During the quarter, we concluded 1 transaction by way of resolution plan being implemented in NCLT. Till March 31, 2020, we have acquired total outstanding dues of Rs. 60,363 Cr at a gross consideration of Rs. 17,069 Cr. Resolution strategies were initiated for majority of the assets acquired. Security Receipts worth ~Rs. 124 Cr were redeemed during the quarter. The outstanding Security Receipts stood at Rs. 11,489 Cr as on March 31, 2020 as compared to Rs. 11,413 Cr as on December 31, 2019. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 3,012 Cr as on March 31, 2020 and Rs. 2,946 Cr as on December 31, 2019.

This year the focus was more on resolution and few critical accounts were resolved through settlement and Corporate Insolvency Resolution Process (CIRP) however during the last quarter of FY 20, the COVID-19 pandemic has cast a shadow over the recoveries. The lock down has also impacted the NCLT processes and consequently our recoveries have been delayed further. The delays in recoveries have increased the carrying costs of the assets under resolution and thereby impacting the returns from these assets.

In addition, the lockdown has led to weaker global demand, supply chain disruptions, lower commodity prices, reduced discretionary spends, factory shutdowns and travel restrictions. The impact of the virus on the global sentiment, economic and otherwise has been immense. While COVID-19 may not have a direct impact, the evolving global and domestic economic slowdown will impact demand and realisations. The cash flows of our business depends on the cash flows of companies which we have lent to and hence these could be impacted basis the sector exposure.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2020 stood at Rs. 6,109 Cr; comprising of Rs. 3,285 Cr in equity schemes (including hybrid schemes) and Rs. 2,824 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2019 stood at Rs. 5,683 Cr; comprising of Rs. 4,143 Cr in equity schemes (including hybrid schemes) and Rs. 1,540 Cr in debt schemes (including liquid scheme).

Borrowing Profile

Our long term borrowing as a proportion of total borrowing stood at approximately 91% as on March 31, 2020.

Awards & Recognitions

• The Asset Triple A Country Awards 2019 - JM Financial Limited awarded for the ‘Best IPO’ (Embassy Office Parks REIT US$ 688 million IPO)

-ends-

The press release and audited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of March 31, 2020, the consolidated loan book stood at ~Rs. 115.3 BN, distressed credit business AUM at ~Rs. 114.9 BN, wealth management AUM at ~Rs. 448.8 BN, mutual fund AAUM at ~Rs. 61.1 BN.

The Group is headquartered in Mumbai and has a presence across 424 locations spread across 144 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

• Rs. 15 crore contribution to PM- CARES Fund
• Rs.15 crore commitment towards healthcare assistance to counter the Covid-19 pandemic

Mumbai, April 07, 2020: JM Financial Group has today committed Rs. 30 crore towards COVID-19 relief measures. As part of this commitment, Rs. 15 crore is being contributed to the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM-CARES) Fund from its CSR funds as well as contributions from its Chairman Mr. Nimesh Kampani and his family members. Further, the group has also pledged to contribute Rs. 15 crore to work towards support for healthcare assistance to counter the Covid-19 pandemic.

As a socially responsible corporate, JM Financial Group has always been at the forefront in supporting various social causes as well as providing aid to various disaster relief initiatives in the past. 

“COVID-19 pandemic has emerged as a global challenge. In this critical moment, we all as socially responsible citizens and corporates must come together and contribute in whatever way we can so that our country can combat this crisis. The core philosophy of our group revolves around a deep commitment to the society and our efforts always reflect that steadfastness. Together, with a collaborative vision and approach, we’ll be able to overcome this unprecedented crisis,” said Mr. Nimesh Kampani, Chairman, JM Financial Group.

About JM Financial Group

JM Financial is an integrated and diversified financial services group. The Group’s primary

businesses include (a) Investment banking, wealth management and securities (IWS) which

includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.

The Group is headquartered in Mumbai and has a presence across 356 locations spread

across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For further information, please contact:

Ms. Manali Pilankar, Corporate Communications

Tel: +91 22 6630 3475

Email: manali.pilankar@jmfl.com

Manish Sheth, Group CFO – JM Financial Limited

Tel: +91 22 5075 5010

Email: manish.sheth@jmfl.com

Effective yield of up to 10.00% p.a.*  

• Ratings - [ICRA] AA (Stable) by ICRA Limited and CRISIL AA/Stable by CRISIL Limited– indicate high degree of safety regarding timely servicing of financial obligations
• Tranche III Issue - Public Issue of NCDs of face value of Rs. 1,000 each with a Base Issue size of Rs. 100 crore with an option to retain oversubscription upto Rs 200 crore aggregating upto Rs. 300 crore (“Tranche III Issue”) which is within the Shelf Limit of Rs. 2,000 crore
• Minimum application size Rs. 10,000 collectively across all series and in multiples of one (1) NCD of face value of Rs. 1,000/- each thereafter
• Tenor ranging from 24, 40, 60 and 120 months
• Allotment on first-come, first-serve basis**;
• Investors can apply for NCDs only in dematerialized form
• No TDS applicable for NCDs held in dematerialized form

   

  Mumbai, February 12, 2020: JM Financial Products Limited (the “Company”), a subsidiary of JM Financial Limited and a NBFC having a diversified product mix proposes to open Tranche III Issue on Thursday, February 13, 2020, of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (“Secured NCDs”) of face value of Rs. 1,000 each with a base Issue size of Rs 100 crore with an option to retain oversubscription up to Rs 200 crore aggregating up to Rs 300 crore, which is within the Shelf Limit of Rs 2000 crore. 

  The Tranche III Issue is scheduled to close on Monday, March 9, 2020 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee constituted by the Board. 

  Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, “JM Financial Products has strengthened its position across business verticals with a diversified product mix. The Company has a debt / equity of 2.4x and has maintained strong liquidity buffers. We will continue to focus on risk adjusted profitable growth. This public issuance shall help us to further diversify our borrowing and investor mix.”

    

  * for Series X – Tenor 120 Months with monthly interest payout option

  **Allotment on the basis of date of upload of each application into the electronic book of the stock exchange except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis

  Issue Structure:

  

  **** The Company shall allocate and allot Series VI Secured NCDs wherein the Applicants have not indicated their choice of the relevant Secured NCD Series. If the Deemed Date of Allotment undergoes a change, the coupon payment dates, Redemption Dates, Redemption Amounts and other cash flow workings shall be changed accordingly.

   

  Ratings by ICRA and CRISIL indicate ‘High degree of safety’

   

  The NCDs have been rated "CRISIL AA/STABLE" by CRISIL for an amount upto Rs. 2,000 crores vide its letter dated January 03, 2019 which has been revalidated on July 30, 2019 and January 21, 2020 and have been rated “[ICRA] AA/STABLE” by ICRA for an amount of upto Rs. 2,000 crores vide its letter dated January 9, 2019 and further revalidated on July 24, 2019, January 14, 2020 and February 04, 2020. The rating of the NCDs by CRISIL and ICRA indicates high degree of safety regarding timely servicing of financial obligations. 

  The NCDs offered through the Tranche III Prospectus read with the Shelf Prospectus are proposed to be listed on BSE Limited. 

  The Lead Managers to the Issue are A. K. Capital Services Limited, JM Financial Limited*** and Trust Investment Advisors Private Limited

  ***In compliance with the proviso to Regulation 21A (1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with Regulation 23(3) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, JM Financial Limited will be involved only in marketing of the Issue. 

  Notes to the Editor: About JM Financial Products Limited ^# 

  JM Financial Products Limited (“The Company”, “JMFPL”) is a “Systemically Important Non –Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India. JMFPL is focused on offering a broad suite of loan products customized to suit the needs of the corporates, SMEs and individuals. The Company broadly operates under four verticals viz. (i) fixed income division (structured financing); (ii) fixed income division (real estate financing); (iii) capital market financing; and (iv) SME financing.

   

• FID (structured financing) – The Company’s wholesale financing segment to corporates includes all types of structured lending to companies across various sectors, promoter financing against listed / unlisted securities and property collateral, acquisition financing, subordinated or mezzanine financing, other secured lending and syndication. 

• FID (real estate financing) – The Company’s real estate financing segment includes loan against land, loan against project at early stage, project funding, loan against ready residential / commercial property and loan against shares.

   

• Capital market financing – The Company’s capital market financing segment includes loans against securities, margin trade financing, arbitrage, buy now sell later, ESOP financing, broker financing, public offer financing and personal loans.

   

• SME Financing – Under this segment, the Company provides loans for varied purposes such as institutional finance, project finance and working capital finance to small and medium enterprises, loan against property and education institutional lending.

In addition to the above, the Company has ventured into real estate broking business under the brand name “Dwello”. The Company, through Dwello, operates primarily in the residential real estate segment and assists buyers during all the stages of their real estate buying cycle. Further, the Company has entered in the housing finance business through its subsidiary, JM Financial Home Loans Limited (JMFHL). JMFHL has been granted a license to operate as a housing finance company by the National Housing Bank of India in Fiscal 2018. The focus of the housing finance business would be to provide home loans to retail customer with a focus on affordable housing segment. 

JMFPL’s loan book stood at Rs. 4,137.2 crores (excluding impact of Ind AS adjustments viz interest accrued, expected credit loss and effective interest rate aggregating to ₹ (7.1) crore) as of December 31, 2019. 

# For further details, please refer to the Shelf Prospectus dated April 11, 2019 and the Tranche III Prospectus dated February 10, 2020. 

For further information, please contact:

Ms. Manali Pilankar, Corporate Communications

Tel: +91 22 6630 3475

Email: manali.pilankar@jmfl.com

Nishit Shah, CFO – JM Financial Products Limited

Tel: +91 22 6630 3522

Email: nishit.shah@jmfl.com

Disclaimer: 

DISCLAIMER CLAUSE OF ICRA : ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its Group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.

 DISCLAIMER CLAUSE OF CRISIL : CRISIL has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by CRISIL from sources which it considers reliable (Information). A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters / distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and / or registration to carry out its business activities in this regard. JM Financial Products Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India. Current rating status and CRISIL Ratings rating criteria are available without charge to the public on the CRISIL web site, www.crisil.com. 

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the disclaimer clause of the BSE. 

DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the BSE to use their network and software of the online system should not in any way be deemed or construed as compliance with various statutory requirement approved by the Exchange; nor does it any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company. 

DISCLAIMER CLAUSE OF RBI: The Company is having a valid Certificate of Registration dated March 2, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the Company or for the correctness of any of the statements or representations made or opinions expressed by the Company and for repayment of deposits/ discharge of liability by the Company. It is distinctly understood that the Shelf Prospectus and the Tranche III Prospectus should not in any way be deemed or construed to be approved or vetted by RBI. 

DISCLAIMER: JM Financial Products Limited, subject to market conditions and other considerations, is proposing a public issue of Secured, Listed, Rated, Redeemable Non-Convertible Debentures and has filed the Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020 with the Registrar of Companies, Maharashtra, Mumbai, BSE Limited and SEBI. The Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020 are also available on the Company’s website at www.jmfinancialproducts.com, on the website of the BSE Limited at www.bseindia.com and the respective websites of the lead managers at www.akgroup.co.in, www.jmfl.com and www.trustgroup.in. Investors proposing to participate in the Tranche III Issue should invest only on the basis of information contained in the Shelf Prospectus dated April 11, 2019 and Tranche lII Prospectus dated February 10, 2020 Investors should note that investment in NCDs involves a high degree of risk and for details relating to the same, please refer to the Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020, including the section 'Risk Factors' beginning on page 12 of the Shelf Prospectus dated April 11, 2019, and section titled "Material Developments" on page 24 of the Tranche III Prospectus dated February 10, 2020 .

Aims to combine Charity with Fitness

Mumbai, February 12, 2017: JM Financial Foundation, the philanthropic arm of JM Financial Group, today successfully held its annual charity event “Walkathon 2017”. The event saw a huge turnout with many young professionals, philanthropists, fitness enthusiasts and employees of the group participating in the walk to spread the message of giving back to society. The Walkathon also helped promote the importance of walking as a step for being healthy.

The six-km walk along Marine Drive sea front, was flagged off by Mr. Nimesh Kampani, Chairman, JM Financial Group, at 07.30 am.

The Walkathon has been instrumental in improving the lives of many since its inception. The event helps mobilize funds for various philanthropic activities carried out by the Foundation, thereby touching the lives of many needy people throughout the year. The funds thus raised are disbursed towards strengthening and uplifting the lesser privileged communities. Some of the key focus areas include Education, Healthcare and Animal Welfare.

Since 2015, we have extended the participation to the public and have launched a campaign through online platforms such as Facebook (www.facebook.com/JMFFWalkathon). This has helped amplify the message and reach out to a wider audience especially the youth.

This year, the event saw active participation from Corporates like Enrich Salons & Academy, PNB Housing Finance Ltd, as well as leading NGOs Akanksha Foundation, Ekam Foundation, Nanhi Kali and Yuva Parivartan.

Speaking on the occasion, Mr. Nimesh Kampani, Chairman, JM Financial Group said, “It’s time we celebrate walking and keeping healthy. The uniqueness of the event is that it combines charity with fitness. Every step we take today also sends a message about our commitment to give back something to our society. I wish to thank our clients, employees and all the participants who have supported us and helped us in making this event successful”.

About JM Financial Foundation

JM Financial has actively adopted Social Responsibility as a key component of its corporate citizenship. In our endeavour to uplift and make a positive contribution towards the lesser privileged communities, we have an organised structure in the form of our philanthropic arm - JM Financial Foundation. The main areas of focus include education, healthcare initiatives, disaster relief, skill development and animal welfare. The Foundation identifies and works alongside several NGOs to work on a number of outreach programs.

For more details:

Manali Pilankar

Corporate Communications

Email: manali.pilankar@jmfl.com

Phone –66303475 / 9702292446

Mumbai, February 11, 2018: JM Financial Foundation, the philanthropic arm of JM Financial Group, today successfully hosted its annual charity initiative “Walkathon 2018”. The six-km walk along Marine Drive sea front was flagged off at 07.30 am in the presence of Mr. Nimesh Kampani, Chairman, JM Financial Group and Mr. Vishal Kampani, Managing Director, JM Financial Group.

The event aimed at mobilizing funds for the several deserving causes undertaken by the Foundation. The funds raised are disbursed towards strengthening and empowering the lesser privileged communities thus touching the lives of many needy people throughout the year. Some of the causes supported by the Walkathon are education & health programs for the underprivileged and differently abled, animal welfare, promotion of sports, music & culture and disaster relief.

The theme for the event this year was ‘Together We Empower. One step at a Time’ which was also promoted through online platforms such as Facebook (www.Facebook.com/JMFFWalkathon)to extend the participation to the public and help amplify the message and reach out to a wider audience.

The Walkathon saw a huge turnout from many young professionals, philanthropists, employees of the group to create awareness and become the catalysts for a positive change. Some of the Corporates who joined along with their teams included Enrich Salons & Academy, PNB Housing Finance Ltd and Nahar Group as well as NGOs such as Ekam Foundation, Jai Vakeel Foundation, JK Trust and Ummeed Child Development Centre.

Speaking on the occasion, Mr. Nimesh Kampani, Chairman, JM Financial Group said, “It is important to inculcate the art of giving or sharing. When we come together through such initiatives it goes a long way in empowering the entire society. Every step we take forward together is a big leap to help those around us who are in need of support. ”

We thank all our clients, employees and participants for their support towards making this event successful, he added.

About JM Financial Foundation

At, JM Financial, philanthropy has always been a priority, culminating into our community welfare programs. As a Foundation, we partner with grass root level organisations to implement various projects to uplift and make a positive contribution towards the lesser privileged communities. The Foundation identifies and works alongside several NGOs to work on a number of outreach programs. Some of the causes supported by the Foundation include providing education to children with developmental / intellectual disabilities, animal conservation, disaster relief, health initiatives for the needy and promotion of sports, music & culture. 

For more details:

Manali Pilankar
Corporate Communications
Email: manali.pilankar@jmfl.com
Phone –66303475 / 9702292446

Mumbai, February 03, 2019: JM Financial Foundation, the philanthropic arm of JM Financial Group, today successfully organized its annual event “Walkathon 2019”. A large number of corporate professionals, philanthropists, fitness enthusiasts and employees of the group participated in the six km walk which was flagged off in the presence of Mr. Nimesh Kampani, Chairman JM Financial Group and Mr. Vishal Kampani – MD, JM Financial Group.

The theme for the Walkathon this year was “One Walk, Many Outcomes”. Through this walk, JM Financial Foundation helps mobilize funds for various philanthropic activities carried out during the year thereby touching the lives of many needy people. It also aims to encourage people to take up walking for a healthier lifestyle.

The funds raised through the Walkathon will be utilised to reach out to the lesser privileged sections of the society. Some of the causes supported by the Walkathon are education & health programs for the underprivileged and differently abled, animal conservation, promotion of sports, music & culture and disaster relief.

Since 2015, the Foundation has also extended the campaigns through online platforms such as Facebook (www.facebook.com/JMFFWalkathon). This has helped to extend the participation to the public and help amplify the message and reach out to a wider audience.

This year, the event saw active participation from Corporates like PNB Housing Finance Ltd as well as NGOs such as Ekam Foundation, Jai Vakeel Foundation, JK Trust, Kherwadi Social Welfare Association and Ummeed Child Development Centre.

Speaking on the occasion, Mr. Nimesh Kampani, Chairman, JM Financial Group said, “Walkathon is a consistent and fulfilling endeavour and it has been inspiring to see so many people come together and participate with us every year for a noble cause. Walkathon encompasses the idea of empowerment for a sustainable future through which we are celebrating the joy of giving back to the society.”

About JM Financial Foundation

At, JM Financial, philanthropy has always been a priority, culminating into our community welfare programs. As a Foundation, we partner with grass root level organisations to implement various projects to uplift and make a positive contribution towards the lesser privileged communities. The Foundation identifies and works alongside several NGOs to work on a number of outreach programs.

Some of the causes supported by the Foundation include providing education to children with developmental / intellectual disabilities, animal care and conservation, disaster relief, health initiatives for the needy and promotion of sports, music & culture. 

For more details:

Manali Pilankar

Corporate Communications

Email: manali.pilankar@jmfl.com

Phone –022- 66303475

Mumbai, January 23, 2020: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the third quarter and nine months ended December 31, 2019.

Summary of Consolidated results FY 20 – Q3 compared to FY 19 – Q3

            (Rs. in Cr)

Summary of Consolidated results FY 20 – 9M compared to FY 19 – 9M

            (Rs. in Cr)

1. Includes diminution / (gain) (net of tax and non-controlling interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs. (2.55 Cr) for Quarter ended December 31, 2019 and ~Rs. 4.26 Cr for quarter ended December 31, 2018.
2. Includes diminution (net of tax and non-controlling interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs. 18.62 Cr for nine months ended December 31, 2019 and ~Rs. 38.40 Cr for nine months ended December 31, 2018.
3. Adjusted for diminution / (gain) in fair value of investments (excluding security receipts held by ARC) and is based on management estimates and have not been subjected to audit or review.

The Earnings per share for the nine months ended December 31, 2019 is Rs. 4.93. The consolidated net worth* as at December 31, 2019 stands at Rs.5,459 Cr and the gross debt equity (equity + non-controlling interest of Rs.2,366 Cr) ratio** is 1.71 times* and net debt equity of 1.30 times* (post reducing cash and cash equivalents of Rs.3,218 Cr). The book value per share is Rs. ­­­­64.90. Our total loan book stood at Rs. ­­­12,662** crore as of December 31, 2019 compared to Rs. 16,136 crore as of December 31, 2018. Gross NPA and Net NPA stood at 1.56% and 1.35% respectively as of December 31, 2019 compared to 0.68% and 0.57% respectively as of December 31, 2018.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds

**Loan book does not include IPO Financing book and Borrowings do not include borrowings for IPO Financing

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“Over the last fifteen months the external environment has been challenging. We have been able to demonstrate strong resilience from these challenges riding on our strong liquidity buffers, prudent leverage ratios as well as diversified businesses.                      

In the context of the overall challenging environment, we had a very good quarter led by our IWS businesses. We have significantly de-grown our wholesale book. Our retail mortgage presence has increased to 27 branches and we continue to grow that business.  The distressed credit team is focused on recoveries.  

We are hopeful that the measures announced by the government will lead to a faster recovery for the economy.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  The IWS segment gained traction during the quarter. Our recruitment in this segment gained momentum especially in the wealth management business. The pipeline for our investment banking transactions continues to remain healthy.

   

  During the quarter, some of our completed investment banking transactions were as follows:

  • Exclusive Financial Advisor to Hotel Leela Venture Limited for sale of four owned Leela Hotels located at Bangalore, Delhi, Chennai, Udaipur, property owned at Agra and all management contracts to Brookfield Asset Management.
  • Book Running Lead Manager (BRLM) to the Initial Public Offer of Ujjivan Small Finance Bank Limited (~Rs. 1,000 Cr) and Prince Pipes and Fittings Limited (~Rs. 656 Cr).
  • BRLM to the Qualified Institutions Placement of Bajaj Finance Limited (~Rs. 8,500 Cr) and Shree Cement Limited (~Rs. 2,400 Cr).
  • Manager to the buyback of equity shares of NIIT Limited (~Rs. 335 Cr) and Adani Ports and Special Economic Zone Limited (~Rs. 1,960 Cr).

     

    The AUM/AUA of our wealth management business stood at Rs. 46,886 Cr (excluding custody assets) as on December 31, 2019 as compared to Rs. 42,738 Cr as on December 31, 2018 and Rs. 46,818 Cr as on September 30, 2019.

    During the quarter, the average daily trading volume stood at Rs. 13,676 Cr.

     

    During the quarter, in IPO financing business, we funded 8 public issues (including 4 NCD issues) wherein the aggregate amount of funding was around Rs. 14,647 Cr.

                                                      

• Mortgage Lending

  The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 8,008 Cr as on December 31, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR. After investing in the right talent, technology and processes, our retail mortgage lending business is all set to build its niche and achieve scale. We are optimistic about the tremendous opportunities prevailing in the segment and the co-lending arrangement with Bank of Baroda will further boost the momentum.

   

  The highlights of the last quarter in respect of the wholesale mortgage lending are as under:

  • We have managed to reduce our SMA2 numbers from 1.94% of the portfolio to 0.73% of the portfolio. This has mainly been a result of timely asset sales. We continue our involvement with our borrowers to identify early signs of stress and find solutions. 
  • As guided earlier, our debt equity and net debt equity stands at 1.78 times and 1.36 times respectively.

     

    We continue to be in a challenging environment as far as the real estate sector is concerned. There have been positive actions by the government by way of the distressed fund which is committed to providing last mile funding to the real estate sector. We have also seen interest from foreign funds in the sector as can be witnessed by the transactions that have taken place in the sector. 

     

    Having said that, the liquidity crunch continues to affect the sector negatively. Lack of availability of credit for new projects or for refinancing the existing projects have created tremendous stress and pressure on the cash flows. Some of the erstwhile large HFCs continue to grow the mortgage lending business very slowly causing further slowdown in collections. 

     

    We are now seeing significant opportunities for deployment but continue to remain extremely selective and cautious about lending going forward.

     

• Distressed Credit

We chose not to participate in any fresh acquisitions during the quarter. The complete focus of the business was on recoveries and resolutions. The recoveries during the quarter stood at Rs. 2,897 Cr. We continue to experience resolution delays in few of our key accounts and face delays in accounts which are under the NCLT process.

The outstanding Security Receipts (SRs) stood at Rs. 11,413 Cr as on December 31, 2019 as compared to Rs. 14,037 Cr as on September 30, 2019. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 2,946 Cr as on December 31, 2019 and Rs. 3,107 Cr as on September 30, 2019.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2019 stood at Rs. 5,683 Cr; comprising of Rs. 4,143 Cr in equity schemes (including hybrid schemes) and Rs. 1,540 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2019 stood at Rs. 6,488 Cr; comprising of Rs. 4,509 Cr in equity schemes (including hybrid schemes) and Rs. 1,979 Cr in debt schemes (including liquid scheme).

Borrowing Profile

Our long term borrowing as a proportion of total borrowing stood at approximately 84% as on December 31, 2019.

Awards & Recognitions

• JM Financial Services has been recognized by BSE Ltd., amongst the Top Performers in Primary Market Segment (Debt Public Issue Bids – Members and Equity – IPO/FPO Bids - Members)

-ends-

The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities business (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of December 31, 2019, the consolidated loan book stood at ~Rs. 126.6 BN, distressed credit business AUM at ~Rs. 114.1 BN, wealth management AUM at ~Rs. 468.9 BN, mutual fund AAUM at ~Rs. 56.8 BN.

The Group is headquartered in Mumbai and has a presence across 380 locations spread across 134 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, January 02, 2020: Bank of Baroda, India’s second largest public sector bank, has entered into a strategic co-lending agreement with JM Financial Home Loans Limited (“JMFHL”), the housing finance arm of JM Financial Group, for offering retail loans to home buyers. 

The association will create an effective lending model synergising the expertise of both Bank of Baroda and JMFHL to provide a seamless experience to retail home loan customers. 

Speaking on the partnership, Mr. Vikramaditya Singh Khichi, Executive Director at Bank of Baroda said, “There is huge potential in the retail home loan space that can be tapped through co-lending partnerships between large organisations like Bank of Baroda and finance players like JM Financial Home Loans. With the Bank’s expertise in mortgage loan processing and low cost of funds, we are confident that this partnership will accelerate credit delivery to homebuyers, thus boosting the home buying segment.”

Speaking on the announcement, Mr. Vishal Kampani- Managing Director, JM Financial Group said, “We are extremely pleased to enter into a partnership with Bank of Baroda to mutually benefit from co-lending activities. We are proud of our existing relationship with Bank of Baroda and this co-lending partnership will further boost our relationship. There is a lot of complementarity in our franchisees which will help in providing a compelling offering to the retail home loan customers.”

Mr. Manish Sheth, CEO, JM Financial Home Loans Ltd said, “We are excited that India’s second largest best public sector bank has chosen us as one of their co-lending partners. We believe co-lending will enable us to penetrate deeper into the home loan market. The alliance will create value for both businesses and customers.”

About Bank of Baroda

Bank of Baroda (“The Bank”) established on July 20, 1908 is a State-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.

Bank of Baroda is India’s third largest bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 9,500+ branches, 13,400+ ATMs and 1,200+ self-service e-lobbies. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. India First Life Insurance and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.

• Visit us at www.bankofbaroda.in
• Facebook https://www.facebook.com/bankofbaroda/
• Twitter https://twitter.com/bankofbaroda
• Instagram https://www.instagram.com/officialbankofbaroda/
• YouTube https://www.youtube.com/channel/UCdf14FHPLt7omkE9CmyrVHA
• LinkedIn https://www.linkedin.com/company/bankofbaroda/

About JM Financial Home Loans Limited:

JM Financial Home Loans Limited, a subsidiary of JM Financial Products Limited, represents the group’s foray into the housing finance business. JM Financial Home Loans Limited primarily focuses on affordable housing segment, catering to low and mid income customer segments in tier 1 and tier 2 towns. We endeavour to cater even to those home buyers who lack sufficient income proofs. The Company leverages on JM Financial Group’s expertise in the real-estate lending segment and uses superior technological capabilities to provide a diverse range of highly customised products and services to home buyers. 

About JM Financial Group

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.

The Group is headquartered in Mumbai and has a presence across 356 locations spread across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

Forward looking statement (Compliance)

Mumbai, December 19, 2019: JM Financial Services Ltd. the dedicated financial services arm of the JM Financial Group, counted amongst the most respectable names in capital markets released details of its new innovative, easy to use, digital solution that will allow its registered Independent Financial Distributors (IFD) to book Corporate Fixed Deposits for their end clients through its website www.jmfinancialservices.in 

Aimed at helping distributors scale their business and focus on strengthening client relationships, JM Financial, the Industry first’s “Fixed Deposits Online” solution will provide both sub-broker assisted transaction as well as investor self-initiated transactions in Corporate Fixed Deposits from institutions of high repute and rating.

By combining technology and goals-based financial planning with personal advisory relationships, the solution will helps its distributors meet the needs of the more than 60% of investors who want a combination of digital capabilities as well as access to expert personal advice. The advantage of this platform is that the investor will continue to control the process, by way of authenticating or approving the transaction, without giving any Power of Attorney to debit their account. They would be able to approve the transaction either using the desktop or mobile application.

Distributors empaneled with JM Financial Services will be able to offer the services to existing as well as new clients, with one time account opening and limited paper work. The platform will be integrated with the Central Know Your Customer Registry (CKYC) thereby eliminating the need for submission of KYC for every transaction.

Commenting on the development, Mr. Surajit Misra, Executive Director & Head, Independent Financial Distributor Group, JM Financial Services Ltd said “We constantly interact with our distributors to understand, what they need and based on their feedback, are pleased to launch this solution, that will allow them to not just provide choice of financial products to their end clients, but also deliver flexibility to place online transactions through a robust and scalable platform. We see this solution increasing efficiency and offering more time to them for relationship building and customer interactions”

The paper less corporate “Fixed Deposits Online” will be in addition to the IPO and Mutual Funds distributor platform offered presently by the firm. The solution will also allow the investors to have access to a consolidated view of all their investments in one place.

The company plans to showcase the solution in a gathering of 200 plus Independent Financial distributors in Mumbai, on December 19, 2019. The attendees will be able to participate in a live hands on demonstration.

-ends-

About JM Financial Services

JM Financial Services Limited is one of India’s finest brokerage firm offering broking and comprehensive investment management services to institutions, banks, corporates, high net-worth individuals and retail clients. For more information, log on to www.jmfinancialservices.in.

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.

The Group is headquartered in Mumbai and has a presence across 356 locations spread across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact

Ms. Arzoo Zehra                       Arzoo.zehra@jmfl.com

Mumbai, November 22, 2019: JM Financial Services Ltd. the dedicated brokerage services arm of JM Financial Group, today unveiled its latest offering, titled “Investories-Anecdotes from the Financial World”

The book was launched with great fanfare in Mumbai by Mr. Ashishkumar Chauhan, CEO-Bombay Stock Exchange at Title Waves on Nov 22, 2019.

“Investories” is a collection of bite-sized learnings in understanding the capital markets especially as investors are being increasingly exposed to multiple avenues for investments as well as multiple intermediaries, platforms and regulations.

In its constant endeavour towards investor education, JM Financial Services has lent paper to the thoughts and words of Mr. Amit Trivedi the author of Investories.

Speaking on the occasion, Mr. Subodh Shinkar, Managing Director & CEO, JM Financial Services said, “We had been considering a book that would be an assortment of timeless principles that just doesn’t bury the reader under charts, stats or graphs, but talks about the subject in an engaging and simplistic manner. We couldn’t have asked for a better collaborator than Mr. Amit Trivedi. His thoughts and approach resonated with the firm’s philosophy of investor education awareness and transparency.”

Mr. Amit Trivedi said, "I have been interacting with a number of investors and investment advisors across the country for quite some time now. I have realized that investors have many questions and doubts when it comes to investing. So, there was a need to put things in perspective and bring out various lessons that would help them make smart investment decisions. It was no surprise that the views of JM Financial Services were also quite similar. As a result, we decided to collaborate on this project. I believe that such initiatives by large firms like JM Financial Services go a long way in empowering the investors, by spreading the right message."

Mr. Trivedi is a highly acclaimed author and financial products and sales trainer. He has conducted several distributor training workshops and investor education seminars. He has painstakingly researched every story and brought them to life with his simple and lucid words.

The book reveals the common mistakes that many investors make, the pitfalls and traps to avoid and the modus operandi that goes into selecting the right investment vehicle. With real life anecdotes, Mr. Trivedi prepares the reader for the reality of the world of investing whether they are beginners or veterans of the markets.

The book will be available in all major bookstores and can also be ordered online on Amazon.

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About JM Financial Services

JM Financial Services Limited is one of India’s finest brokerage firm offering broking and comprehensive investment management services to institutions, banks, corporates, high net-worth individuals and retail clients. For more information, log on to www.jmfinancialservices.in.

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.

The Group is headquartered in Mumbai and has a presence across 356 locations spread across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact

Ms. Arzoo Zehra                       Arzoo.zehra@jmfl.com

Mumbai, October 23, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the second quarter and half year ended September 30, 2019.

Summary of Consolidated results FY 20 – Q2 compared to FY 19 – Q2

            (Rs. in Cr)

Summary of Consolidated results FY 20 – H1 compared to FY 19 – H1

            (Rs. in Cr)

1. Includes diminution (net of tax and non-controlling interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs. 4.16 Cr for Quarter ended September 30, 2019 and ~Rs. 13.46 Cr for quarter ended September 30, 2018.
2. Includes diminution (net of tax and non-controlling interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs. 21.15 Cr for half year ended September 30, 2019 and ~Rs. 34.13 Crfor half year ended September 30, 2018.
3. Adjusted for diminution / (gain) in fair value of investments (excluding security receipts held by ARC) and is based on management estimates & have not been subjected to audit or review.

The Earnings per share for the half year ended September 30, 2019 is Rs. 3.06. The consolidated net worth* as at September 30, 2019 stands at Rs.5,298 Cr and the gross debt equity (equity + non-controlling interest of Rs.2,299 Cr) ratio** is 1.78 times* and net debt equity of 1.51 times* (post reducing cash and cash equivalents of Rs.2,035 Cr). The book value per share is Rs. ­­­­62.99. Our total loan book stood at Rs. ­­­13,810 crore as of September 30, 2019 compared to Rs. 17,108** crore as of September 30, 2018. Gross NPA and Net NPA stood at 1.27% and 1.11% respectively as of September 30, 2019 compared to 0.54% and 0.44% respectively as of September  30, 2018.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds

**Loan book does not include IPO Financing book and Borrowings do not include borrowings for IPO Financing

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“We continue to remain resilient in a challenging environment for NBFCs and capital markets. We have strong liquidity buffers and are extremely prudent on our leverage ratios. We have been able to raise long term funds and expect to benefit in the long term as we expect a more benign competitive environment.

The corporate tax rate cut will not only boost corporate earnings but also lead to the stabilisation of the corporate sentiment. Going forward, as the reforms wheel shows sustained signs of building speed, we hope the markets will return to higher participation levels and activities. We remain focused and believe our diverse set of businesses will help us perform and deliver value for our clients.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  The IWS segment gained traction during the quarter. Our recruitment in this segment gained momentum especially in the wealth management business. The pipeline for our investment banking transactions continues to remain healthy. The loan book in this segment remained steady during the quarter.

   

  During the quarter, some of our completed investment banking transactions were as follows:

  • Global Coordinator and Book Running Lead Manager to the Initial Public Offer of Spandana Sphoorty Financial Limited (~Rs. 1,200 Cr) and Qualified Institutions Placement of Yes Bank Limited (~Rs. 1,930 Cr).
  • Manager to the buy back of equity shares of Wipro Limited (~Rs. 10,500 Cr).
  • Manager and Selling Broker to the Offer for Sale of equity shares of Reliance Nippon Life Asset Management Company Limited (~Rs. 1,011 Cr).
  • Lead Manager to the public issue of Non-Convertible Debentures of Shriram Transport Finance Company Limited (~Rs. 340 Cr) and JM Financial Products Limited (~Rs. 128 Cr).
  • Exclusive Financial Advisor to Sona BLW Precision Forgings and JM Financial Private Equity on controlling stake sale to Blackstone.
  • Exclusive Financial Advisor to Jaypore and its shareholders for sale of 100% equity shares of Jaypore to Aditya Birla Fashion and Retail Limited.
  • Exclusive Financial Advisor and Exclusive Manager for the Open Offer by Baring Private Equity Asia to the shareholders of NIIT Technologies Limited
  • Exclusive Manager to the Open Offer made by Epsilon Bidco Pte. Ltd. (part of the Blackstone group) to the public shareholders of Essel Propack Limited.

     

    The AUM/AUA of our wealth management business stood at Rs. 46,818 Cr (excluding custody assets) as on September 30, 2019 as compared to Rs. 43,941 Cr as on September 30, 2018 and Rs. 43,038 Cr as on June 30, 2019.

    During the quarter, the average daily trading volume stood at Rs. 10,748 Cr.

     

    During the quarter, in IPO financing business, we funded 3 public issues (including 1 NCD issue) wherein the aggregate amount of funding was around Rs. 3,370 Cr.

                                                      

• Mortgage Lending

  The total mortgage lending book (comprising of loan book of JM Financial Credit Solutions Limited and JM Financial Home Loans Limited) stood at Rs. 8,302 Cr as on September 30, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.  We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.

   

  The real estate sector is majorly affected due to the liquidity crunch being faced by the sector. This has been due to various factors starting from the introduction of RERA to demonization to GST. The final blow came in the form of the liquidity issues being faced by NBFCs and HFCs. This has also impacted the pace of the ongoing projects as most NBFCs have slowed down disbursements to committed sanctions and almost stopped any new sanctions. Moreover, some of the HFCs have also slowed down home loan disbursements leading to difficulties in new sales and collections. There is also a major crisis of confidence with regards to the end user towards under construction projects. However, a silver lining is that affordable and low to mid segments in select geographies are still performing well and sales continue to be healthy.

   

  We have always guided that there will be a rapid consolidation in the real estate space and believe that the market share of the larger developers will increase substantially. With almost negligible amount of price appreciation in residential real estate over the last 6-7 years, investors are completely out of the market. The margins of developers have reduced and they are forced to look at business differently. We also believe that the liquidity crunch in the sector will continue for another one year and the developers with lower leverage and ability to sell will be the ones who will be better placed to tide through this time.

   

  In the backdrop of the above mentioned scenario the impact on our portfolio can be summarised as under:

  • Since majority of the portfolio is cashflow backed even since September 2018, we have continued to witness healthy weekly collections in our escrow accounts. This demonstrates that sales and collections are still happening at the right price point at good locations and in projects being developed by reputed builders. However, in few of the cases the pace of collections has gone down substantially. In these cases we have actively been involved with the developers and will use in-house expertise to push sales.
  • Low concentration risk and geographic diversification has enabled us not to be impacted significantly due to slowdown in a particular market or a particular developer. We have always focused on keeping the average exposure to each project below Rs. 100 Cr and have avoided concentration to any one geography. 23% of the portfolio are loans given against ready inventory which witnesses robust sales and collection.
  • Smaller developers are finding it difficult to record good sales when the project is under construction. In such cases we are working proactively to get in another reputed developer to buy the project or enter into Joint Developer Agreements or Development Management Agreements to ensure timely execution and sales of the project.
  • In some cases due to the various reasons mentioned above additional construction funding is required for the projects to take them to completion. We are strategically focusing on ensuring that all our projects have full financial closure to ensure we get the project to Occupation Certificate stage. In most cases we have witnessed very rapid and robust sales once OC is received.

     

    We have carried out stress tests under multiple scenarios on our loan book and have realized that though developers might face liquidity mismatch, the portfolio has healthy security / cashflow covers to enable us to recover our entire loan.

     

    We will carry out these stress tests at regular intervals to reassess the situation, especially as there is some probability that current situation could worsen before it gets better.

     

     

• Distressed Credit

We chose not to participate in any fresh acquisitions during the quarter. The complete focus of the business was on recoveries and resolutions. The recoveries during the quarter stood at Rs. 483 Cr. We have also been experiencing resolution delays in some of our key accounts further impacting our focus to look at fresh acquisitions. Further, the global investors in distressed assets have virtually stopped their fresh investments pending clarity and final judgement on certain cases.

 The outstanding Security Receipts (SRs) stood at Rs. 14,037 Cr as on September 30, 2019 as compared to Rs. 14,191 Cr as on June 30, 2019. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 3,107 Cr as on September 30, 2019 and Rs. 3,140 Cr as on June 30, 2019.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2019 stood at Rs. 6,488 Cr; comprising of Rs. 4,509 Cr in equity schemes (including hybrid schemes) and Rs. 1,979 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2019 stood at Rs. 7,710 Cr; comprising of Rs. 4,642 Cr in equity schemes (including hybrid schemes) and Rs. 3,068 Cr in debt schemes (including liquid scheme).

Borrowing Profile

We continued our efforts of diversifying our sources and maturities for our borrowing profile. Our long term borrowing as a proportion of total borrowing stood at approximately 82% as on September 30, 2019.

Awards & Recognitions

• JM Financial Asset Management Limited ranked among ​India’s Top 50  Great Mid-Size Workplaces, 2019 by The Great Place to Work Institute.

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The unaudited financial results are attached. The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of September 30, 2019, the consolidated loan book stood at ~Rs. 138.1 BN, distressed credit business AUM at ~Rs. 140.4 BN, wealth management AUM at ~Rs. 468.2 BN, mutual fund AAUM at ~Rs. 64.9 BN.

The Group is headquartered in Mumbai and has a presence across 356 locations spread across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, September 25, 2019 : JM Financial Services Ltd. the dedicated financial services arm of the JM Financial Group, counted amongst the most respectable names in capital markets has announced the appointment of Mr. Ashu Madan as Co-Head - Business Affiliate Group and Managing Director. Ashu brings with him more than 29 years of senior management experience including strategic development and execution in capital markets.

The appointment of Ashu is in line with the Company’s plan to further strengthen its retail network in the region and to expand its customer base in India. Leveraging his extensive business development experience, capital market proficiency and go to market expertise, Ashu will lead the India wide expansion of JM Financial Services in the already successful franchisee business. He will also focus on fueling new client acquisition strategy. JM Financial Services now has a presence in 340 plus locations across the country. 

Commenting on the appointment, Mr. Subodh Shinkar, the CEO and Managing Director of JM Financial Services said “Ashu understands the equity based business, sales, risk management, client satisfaction, in a way that few executives do and he has got a proven track record of maximizing the growth potential of a range of businesses, He is joining an already successful, energetic team at the right time to spearhead client and Franchisee expansion”

Mr. Ashu Madan said, “I am excited having joined the JM Financial Services team”. I believe that the greatest brands are those that find a way to deliver value to clients apart from offering great products in a large market. JM Financial Group while being rooted in its value system, has a great business model, extensive product range and a talented management team that uniquely positions the company to capitalize on the evolving capital markets landscape. It is poised to even greater success and I am looking forward to take the business to the next level.”

Ashu comes with over 29 years of experience in the financial services sector. Prior to joining JM Financial Services, he was associated with Religare Securities for over 18 years where he was responsible for leading equity broking business, while developing new products and strategies to drive the business. He has also served as AVP at the Gadgil Western group managing Retail Distribution & sales in both strategic and operational roles.

-ends-

About JM Financial Services

JM Financial Services Limited is one of India’s finest brokerage firm offering broking and comprehensive investment management services to institutions, banks, corporates, high net-worth individuals and retail clients. For more information, log on to www.jmfinancialservices.in.

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.

The Group is headquartered in Mumbai and has a presence across 330 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact

Ms. Arzoo Zehra                       Arzoo.zehra@jmfl.com

Ms. Manali Pilankar                 Manali.pilankar@jmfl.com

Mumbai, August 29, 2019: JM Financial Private Equity Fund II has finalized an investment of INR 450 mn (USD ~6.4 mn) in Mumbai-based health and wellness focused fast - growing nutraceutical company, Innovcare Lifesciences Private Limited (“Innovcare” or the “Company”), to fund the Company’s current expansion plans. Proceeds from the investment will support augmentation of the current product portfolio and expansion into new therapeutic areas. This marks the closing of the fifth investment by JM Financial India Fund II.

Innovcare is a fast -growing nutraceutical and branded generics company focused on creating power brands within the orthopedic, gynecology and pain management therapeutic areas. The key management of the company brings collective work experience of more than 100 years in the nutraceutical and pharmaceutical space.

Within 3 years of operations, several of the Company’s products are ranked amongst the top 10 in their respective categories. The Company continues to expand sales of its existing products and has a robust pipeline of new products.  Currently, the Company has 15 brands and over 40 SKUs and a sizeable field force marketing Innovcare products pan-India.

The Company’s focus is on strengthening and expanding the nutraceutical portfolio, especially for chronic ailments. Existing investors will be participating alongside investment by JM Financial India Fund II.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, said, “Partnering with entrepreneurs and management teams with the vision to build scalable and sustainable businesses has been the key focus of JM Financial Private Equity. The fund infusion will help Innovcare in expanding its product portfolio in a more aggressive manner. Innovcare has been growing consistently since it was founded and we strongly believe in the management’s disciplined and innovative approach. We believe the nutraceuticals sector in India is rapidly evolving to appeal to a larger and broader customer base due to rising consumer awareness and increased focus on health and wellness.”

Commenting on the fundraise, Mr. Lalit Wadhawan, Managing Director and CEO, Innovcare said, “Innovcare has emerged as a fast growing nutraceutical focused player in the country. This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans while staying true to the company’s founding principles. 

Advisors on the deal included o3 Capital and Economic Laws Practice. 

About Innovcare:

Innovcare is a fast growing health and wellness focused nutraceutical company focused on high growth therapy areas.  More information about Innovcare can be found at: http://www.innovcare.in/

About JM Financial India Fund II:  JM Financial India Fund II , is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution), Vendiman Private Limited (India’s largest vending solutions provider) and Isthara Parks Private Limited (operator of co-living spaces).  For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

The Group is headquartered in Mumbai and has a presence across 330 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

Issue Structure:

In Series 1, Coupon rate will be paid on an annual basis at a rate of 10.20%; and the tenor is 38 months. The Effective Yield (per annum) is 10.21%.

In Series II, the tenor is 38 months and the redemption amount per NCD is Rs. 1,360.54.

The Effective Yield (per annum) is 10.20%.

In Series III, Coupon rate will be paid on an annual basis at a rate of 10.30% and the tenor is 60 months. The Effective Yield (per annum) is 10.29%. Call option may be exercised by the Company at any time after 36 months from the Deemed Date of Allotment.

In Series IV, Coupon rate will be paid on monthly basis at a rate of 9.85%; and the tenor is 60 months. The Effective Yield (per annum) is 10.30%. Call option may be exercised by the Company at any time after 36 months from the Deemed Date of Allotment.

In Series V, The tenor is 84 months and the redemption amount per NCD is Rs. 2,000. The Effective Yield (per annum) is 10.40%.

Category III Investors (High Net-worth Individuals Investors or HNIs) are defined as Resident Indian Individuals and Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10,00,000 across all Series of NCDs in the Issue. Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10,00,000 across all Series of NCDs in the Issue.

Eligibility to receive Additional Incentives

The initial Allottees being Resident Indian Individuals forming part of Category III (High Net-worth Individual Investors other than Hindu Undivided Families) and Category IV (Retail Individual Investors other than Hindu Undivided Families) in the Tranche II Issue who are Senior Citizens (above 60 years of age) on the Deemed Date of Allotment shall be eligible for an additional incentive of 0.10% p.a. provided that, the NCDs issued under the proposed Tranche II Issue are continued to be held by such investors on the relevant Record Date for the relevant Coupon / Interest Payment Date for the relevant Series.

Accordingly, the amount payable on redemption of Secured NCDs issued under Series II and Series V Secured NCDs to such Senior Citizens is Rs. 1,364.45 and                           Rs. 2,012.70 per NCD respectively.

To clarify, additional Coupon/Interest will be paid either on the NCDs allotted on the Deemed Date of Allotment or held on the Record Date, whichever is lower, and will not be paid for the NCDs bought/acquired by the NCD Holders through secondary market/open market. 

Ratings by CRISIL and ICRA indicate ‘High degree of safety’

The NCDs have been rated "CRISIL AA/STABLE" by CRISIL for an amount upto Rs. 2,000 crores vide its letter dated January 3, 2019 which has been revalidated on July 30, 2019 and have been rated “[ICRA] AA/STABLE” for an amount of upto Rs. 2,000 crores vide its letter dated January 9, 2019 and further revalidated on July 24, 2019. The rating of the NCDs by CRISIL and ICRA indicates high degree of safety regarding timely servicing of financial obligations.

The NCDs offered through the Tranche II Prospectus read with the Shelf Prospectus are proposed to be listed on BSE Limited (“Designated Stock Exchange”).

The Lead Managers to the Issue are A. K. Capital Services Limited, JM Financial

Limited** and Trust Investment Advisors Private Limited

* For Series V, 84 months – Cumulative option

**In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with Regulation 23(3) of the Securities and Exchange Board of India (ICDR) Regulations, 2018, as amended, JM Financial Limited will be involved only in marketing of the Issue. 

Notes to the Editor: About JM Financial Products Limited

JM Financial Products Limited (”the Company”, “JMFPL”) is a “Systemically Important Non –Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India. The Company has broadened its services from lease syndication and vehicle leasing to offering financial solutions through lending, syndication, participation in lending for securities issuance and distribution. JMFPL is focused on offering a broad suite of secured and unsecured loan products which are customized to suit the needs of the corporates, SMEs and individuals. The Company broadly operates under four verticals viz. (i) fixed income division (structured financing) (“FID (structured financing)”); (ii) fixed income division (real estate financing) (“FID (real estate financing)”); (iii) capital market financing; and (iv) SME financing.

• FID (structured financing) – The Company’s wholesale financing segment to corporates includes all types of structured lending to companies across various sectors, promoter financing against listed / unlisted securities and property collateral, acquisition financing, subordinated or mezzanine financing, other secured lending and syndication.

• FID (real estate financing) – The Company’s real estate financing segment includes loan against land, loan against project at early stage, project funding, loan against ready residential / commercial property and loan against shares.

• Capital market financing – The Company’s capital market financing segment includes loans against securities, margin trade financing, arbitrage, buy now sell later, ESOP financing, broker financing, public offer financing and personal loans.

• SME Financing – Under this segment, The Company’s provides loans for varied purposes such as institutional finance, project finance and working capital finance to small and medium enterprises, loan against property and education institutional lending.

In addition to the above, the Company has ventured into real estate broking business under the brand name “Dwello”. The Company, through Dwello, operates primarily in the residential real estate segment and assists buyers during all the stages of their real estate buying cycle. Further, we have entered in the housing finance business through our Subsidiary, JM Financial Home Loans Limited (JMFHL).JMFHL has been granted a license to operate as a housing finance company by the National Housing Bank of India in Fiscal 2018. The focus of our housing finance business would be to provide home loans to retail customer with a focus on affordable housing segment.

JMFPL’s loan book stood at Rs. 5,503.4 crores (excluding impact of Ind AS adjustments viz interest accrued, expected credit loss and effective interest rate aggregating to ₹ 3.5 crore)  as of June 30, 2019. 

For further information, please contact:
Ms. Manali Pilankar, Corporate Communications
Tel: +91 22 6630 3475
Email: manali.pilankar@jmfl.com

Nishit Shah, CFO – JM Financial Products Limited
Tel : +91 22 6630 3522
Email : nishit.shah@jmfl.com

Mumbai, July 19, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the first quarter ended June 30, 2019.

Summary of Consolidated results FY 20 – Q1 compared to FY 19 – Q1

            (Rs. in Cr)

1. Includes diminution (net of tax and non-controlling interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs.16.99 Cr for Quarter ended June 30, 2019 and ~Rs. 20.67 Cr for quarter ended June 30, 2018.
2. Adjusted for diminution / (gain) in fair value of investments (excluding security receipts held by ARC) & is based on management estimates & have not been subjected to audit or review.

The Earnings per share and Diluted Earnings per share, for the quarter ended June 30, 2019 is Rs.1.51. The consolidated net worth* as at June 30, 2019 stands at Rs.5,208.94 Cr and the gross debt equity (equity + non-controlling interest) ratio** is 1.92 times* and net debt equity of 1.65 times*. The book value per share is Rs. ­­­­­61.95. Our total loan book stood at Rs. ­­­­13,926** crore as of June 30, 2019 compared to Rs. 16,442 crore as of June 30, 2018. Gross NPA and Net NPA stood at 0.90% and 0.80% respectively as of June 30, 2019 compared to 0.56% and 0.51% respectively as of June 30, 2018.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds

**Loan book does not include IPO Financing book and Borrowings do not include borrowings for IPO Financing

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“The NBFC and HFC sectors have been facing headwinds since last September. Given the situation we are maintaining high liquidity levels in the group. The liquidity starvation since last September and the negative carry on account of the high liquidity maintained in the group are getting reflected in the numbers. During this period, we have demonstrated resilience and will continue to remain prudent. Our pipeline for investment banking transactions continues to remain robust.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  During the quarter, some of our completed investment banking transactions were as follows:

  • Left Lead Coordinator & Book Running Lead Manager to the Initial Public Offer of Metropolis Healthcare Limited (~Rs. 1,200 Cr).
  • Manager to buy back of equity shares of Cyient Limited (~Rs. 200 Cr).
  • Manager and Selling Broker to the Offer for Sale of equity shares of Reliance Nippon Life Asset Management Company Limited (~Rs. 1,069 Cr), L&T Technology Services Limited (~Rs. 639 Cr) and Xchanging Solutions Limited (~Rs. 79 Cr).
  • Lead Manager to the public issue of Non-Convertible Debentures of JM Financial Products Limited (~Rs. 387 Cr).
  • Book Running Lead Manager to the REIT Listing of Embassy Office Parks (~ Rs. 4,750 Cr).

     

    The AUM/AUA of our wealth management business stood at Rs. 43,038 Cr (excluding custody assets) as on June 30, 2019 as compared to Rs. 42,808 Cr as on June 30, 2018 and Rs. 41,886 Cr as on March 31, 2019.

    During the quarter, the average daily trading volume stood at Rs. 8,205 Cr.

     

    During the quarter, in IPO financing business, we funded 6 public issues (including 2 NCD issues) wherein the aggregate amount of funding was around Rs. 5,757 Cr.

                                                      

    Our loan book in the IWS segment stood at Rs. 5,320* Cr as on June 30, 2019.

     

    *Does not include IPO Financing book

     

• Mortgage Lending

  The total mortgage lending book stood at Rs. 8,455 Cr as on June 30, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.  We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.

   

  The real estate sector is currently majorly affected due to liquidity crunch being faced by the sector. This has been due to various factors starting from the introduction of RERA to demonization to GST. The final blow came in the form of the recent liquidity issues being faced by NBFCs and HFCs. This has also impacted the pace of the ongoing projects as most NBFCs have slowed down disbursements to committed sanctions and almost stopped any new sanctions. Moreover, some of the HFCs have also slowed down home loan disbursements leading to difficulties in new sales and collections. However, sales continue to be healthy in the affordable and mid segments, completed inventory and in projects being developed by reputed developers.

   

  In the backdrop of the above mentioned scenario our portfolio has largely been unaffected due to the below mentioned reasons:

  • Majority of the portfolio is cashflow backed. Even since September 2018, we have not been witnessing a slowdown in the weekly collections in our escrow accounts. This demonstrates that sales and collections are still happening at the right price point at good locations and in projects being developed by reputed builders. 
  • Low concentration risk and geographic diversification – We have always focused on keeping the average exposure to each group below INR 100 crs and have avoided concentration to any one geography.
  • 22% of the portfolio are loans given against ready inventory which witnesses robust sales and collection.

     

    We have carried out stress tests under multiple scenarios on our loan book and have realized that though developers might face liquidity mismatch, the portfolio has healthy security / cashflow covers to enable us to recover our entire loan even if the situation were to worsen.
     

• Distressed Credit

During the quarter, Banks/NBFCs announced various NPA portfolio auctions. We closed 2 deals during the quarter for one of our accounts as part of debt aggregation. During the quarter, the focus of Asset Reconstruction business was primarily on recoveries and resolution and we saw recoveries from various accounts. 

The outstanding Security Receipts (SRs) stood at Rs. 14,191 Cr as on June 30, 2019 as compared to Rs. 14,044 Cr as on March 31, 2019. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. ­­­­­3,140 Cr as on June 30, 2019 and Rs. 2,939 Cr as on March 31, 2019.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended June 30, 2019 stood at Rs. 7,710 Cr; comprising of Rs. 4,642 Cr in equity schemes (including hybrid schemes) and Rs. 3,068 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2019 stood at Rs. 8,712 Cr; comprising of Rs. 5,659 Cr in equity schemes (including hybrid schemes) and Rs.3,053 Cr in debt schemes (including liquid scheme).

Borrowing Profile

We continued our efforts of diversifying our sources and maturities for our borrowing profile. During the quarter, we raised Rs.387 Cr in the public issue of secured Non-Convertible Debentures in JM Financial Products Limited. Our long term borrowing as a proportion of total borrowing stood at approximately 72%* as on June 30, 2019.

* Does not include short term borrowings related to IPO financing

Awards & Recognitions

• JM Financial Services Limited has been recognized among India’s 20 Best Workplaces in BFSI – 2019 by Great Place to Work®.

-ends-

The unaudited financial results are attached. The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of June 30, 2019, the consolidated loan book stood at ~Rs. 139.3 BN, distressed credit business AUM at ~Rs. 141.9 BN, wealth management AUM at ~Rs. 430.4 BN, mutual fund AAUM at ~Rs. 77.1 BN.

The Group is headquartered in Mumbai and has a presence across 343 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, June 25, 2019: JM Financial India Fund II (the “Fund”) has finalized an investment of INR 400 mn (USD ~5.7 mn) in Coimbatore-based co-living operator, Isthara Parks Private Limited (“Isthara” or the “Company”) to fund the Company’s current expansion plans. Proceeds from the investment will support expansion in existing markets Hyderabad, Bangalore and NCR initially, as well as in other key cities in Asia thereafter. This marks the closing of the fourth investment by the Fund.

JM Financial India Fund II is a sector-agnostic growth-capital private equity fund set up by JM Financial which invests in high-growth, small to mid-market companies in financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors.

Isthara provides fully-furnished shared-living accommodation for working professionals and students, along with a host of amenities such as daily meals, WiFi internet, gym, laundry and housekeeping service, etc. In addition, the Company organises community-focused events on a regular basis to promote co-living amongst residents. Currently, the Company manages about 3,000 beds across 29 properties in Hyderabad, Bangalore and NCR.

Isthara, equipped with its technology-enabled platform, is helping to bridge the chasm between demand and supply in the rental housing market by offering fully-serviced accommodation in key catchments at attractive prices. Its offerings are seamlessly integrated with the help of proprietary AI driven technology platform which enables residents to interact, raise service requests, avail on demand services, pay bills, etc., and provide the sort of plug-and-play convenience which has become the mainstay of millennial decision making.

Commenting on the investment, Mr. Darius Pandole, Managing Director & CEO, PE & Equity AIFs, said, “Partnering with entrepreneurs and management teams with the vision to build scalable and sustainable businesses has been the key focus of JM Financial Private Equity. Isthara has been growing consistently since it was founded and we strongly believe in the management’s disciplined approach. Although, at an early stage right now, we believe the co-living sector in India is rapidly evolving to appeal to a larger and broader tenant base due to its cost effectiveness, convenience and technology orientation. We look forward to building a leading co-living brand together.”

Commenting on the fundraise, Gilbert James, Managing Director, Isthara said, “Isthara has emerged as the benchmark for fully serviced co-living spaces in the country. This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans while staying true to the company’s founding principles.”

Advisors on the deal included AZB & Partners, Jones Lang LaSalle, and Nine Rivers Capital Advisors.

About Isthara:

Isthara operates co-living campuses offering fully-serviced accommodation to young working professionals and students, together with a comprehensive suite of services including meals, WiFi internet, housekeeping service, laundry service, etc. More information about Isthara can be found at: http://www.isthara.com/

About JM Financial India Fund II:  JM Financial India Fund II , is a sector-agnostic growth-capital private equity fund that targets to invest in high-growth, small to mid-market companies, with a strong focus on financial services, consumer, IT / ITeS, infrastructure services and manufacturing sectors. Existing investments of the Fund include India Home Loan Limited (an affordable housing finance company), Spandana Sphoorty Financial Limited (a leading micro-finance institution) and Vendiman Private Limited (India’s largest vending solutions provider).  For further information please refer to: https://www.jmfpe.com/

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of March 31, 2019, the consolidated loan book stood at ~Rs. 141.1 BN, distressed credit business AUM at ~Rs. 140.4 BN, wealth management AUM at ~Rs. 418.9 BN, mutual fund AAUM at ~Rs. 87.1 BN.

The Group is headquartered in Mumbai and has a presence across 330 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Manali Pilankar

Corporate Communications

Tel.: +91 22 6630 3475

Email: manali.pilankar@jmfl.com 

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Mumbai, May 2, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the audited financial results for the quarter and twelve months ended March 31, 2019.

The Board of Directors have recommended a final dividend of Re. 0.50 per share of the face value of Re.1/- each.

Summary of Consolidated results FY 19 compared to FY 18

            (Rs. in Cr)

Summary of Consolidated results FY 19 – Q4 compared to FY 18 – Q4

            (Rs. in Cr)

1. Includes diminution / (gain) (net of tax and minority interest) in fair value of investments (excluding security receipts held by ARC) amounting to~ Rs.19 Cr for Quarter ended March 31, 2019 and ~Rs. (48 Cr) for quarter ended March 31, 2018.
2. Includes diminution / (gain) (net of tax and minority interest) in fair value of investments (excluding security receipts held by ARC) amounting to ~Rs.57 Cr for twelve months ended March 31, 2019 and ~Rs.(52 Cr) for twelve months ended March 31, 2018.
3. Adjusted for diminution / (gain) in fair value of investments (excluding security receipts held by ARC) & is based on management estimates & have not been subjected to review or audit

The Earnings per share and Diluted Earnings per share, for the twelve months ended March 31, 2019 is Rs.6.82 and Rs.6.79 respectively. The consolidated net worth* as at March 31, 2019 stands at Rs.5,079.25 Cr and the debt equity (equity + minority Interest) ratio is 1.94 times* and net debt equity of 1.69* times. The book value per share is Rs 60.47.Our total loan book stood at Rs. 14,107 crore as of March 31, 2019 compared to Rs. 14,772** crore as of March 31, 2018. Gross NPA and Net NPA stood at 0.68% and 0.55% respectively as of March 31, 2019 compared to 0.63% and 0.56% respectively as of March 31, 2018.

* Computed after reducing goodwill of Rs.52.44 Cr from shareholder’s funds

**Does not include Public issue of NCDs Financing book

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

 “Over the last six months we have substantially reduced our Commercial Paper borrowing through repayments from our short term asset maturities. We have improved our long term borrowing ratio to 73% of total borrowing. Our balance sheet has emerged stronger in the last six months. We believe we are well positioned to benefit from the business opportunities”.

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

   

  During the quarter, some of our investment banking transactions were as follows:

• Transaction Advisor to Reliance Group on its acquisition of Den Networks Limited and Manager to the Open Offer triggered pursuant to the acquisition.
• Transaction Advisor to Reliance Group on its acquisition of Hathway Cable Datacom Limited (Hathway) and Manager to the Open Offers triggered in Hathway, GTPL Hathway Limited and Hathway Bhawani Cabletel Datacom Limited, pursuant to the acquisition of Hathway.
• Financial Advisor to Heineken in connection with the acquisition of 2.80% of United Breweries Limited.
• Exclusive Financial Advisor to Sundaram Finance Limited and Royal Sundaram General Insurance Co. Limited on the sale of 40% stake in Royal Sundaram General Insurance Co. Limited to Ageas Insurance International N.V.
• Financial Advisor to Orient Refractories Limited (Orient) in connection with the merger of certain group companies with Orient.
• Advisor to Zydus Wellness Limited for acquisition fund raising.
• Exclusive Financial Advisor to True North Fund VI LLP and exclusive Manager to the Open Offer for acquisition of 75% equity stake in Shree Digvijay Cement Company Limited.
• Exclusive financial advisor to Scootsy Logistics Pvt. Ltd. on sale of its 100% equity shares to Swiggy (Bundl Technologies Pvt. Ltd.).
• We also provided fairness opinions for a number of landmark transactions including:

• Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda.
• Amalgamation of Gruh Finance Limited with Bandhan Bank Limited.
  • Manager to buy back of equity shares of Mphasis Limited (~Rs. 988 Cr), HEG Limited (~Rs. 750 Cr) and Tata Investment Corp Limited (~Rs. 450 Cr).
  • Left Lead Coordinator & Book Running Lead Manager to the Initial Public Offer of Chalet Hotels Limited (~Rs. 1,640 Cr)

     

    The AUM/AUA of our wealth management business stood at Rs.41,886 Cr (excluding custody assets) as on March 31, 2019 as compared to Rs. 31,808  Cr as on March 31, 2018 and Rs. 42,738 Cr as on December 31, 2018.

    During the quarter, the average daily trading volume stood at Rs. 5,820 Cr.

                                                      

    Our loan book in the IWS segment stood at Rs. 5,627 Cr as on March 31, 2019.

     

• Mortgage Lending

  The total mortgage lending book stood at Rs. 8,324 Cr as on March 31, 2019. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.  We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.

   

• Distressed Credit

During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 2 deals during the quarter, for 1 new account and for 1 account as part of debt aggregation. During the quarter, the Asset Reconstruction business also saw recoveries from various accounts. Also we see a big opportunity arising out of Companies undergoing Corporate Insolvency Resolution Process in IBC-NCLT. 

The outstanding Security Receipts (SRs) stood at Rs.14,044 Cr as on March 31, 2019 as compared to Rs. 14,221 Cr as on December 31, 2018. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 2,939 Cr as on March 31, 2019 and Rs. 3,095 Cr as on December 31, 2018.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2019 stood at Rs. 8,712 Cr; comprising of Rs. 5,659 Cr in equity schemes (including hybrid schemes) and Rs. 3,053 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2018 stood at Rs. 11,364 Cr; comprising of Rs.8,357 Cr in equity schemes (including hybrid schemes) and Rs.3,007 Cr in debt schemes (including liquid scheme).

Borrowing Profile

We continued our efforts of diversifying our sources and maturities for our borrowing profile. Our long term borrowing as a proportion of total borrowing stood at approximately 73% as on March 31, 2019.

Awards & Recognitions

• Mr. Nimesh Kampani conferred with  the Mint India Investment  Summit - Hall of Fame Award for his outstanding contribution to Investment Banking at Mint India Investment Summit 2019 - Hall of Fame Award
• JM Financial awarded as the Best Investment Bank at Banking Financial Services and Insurance Awards 2019 presented by ET NOW
• JM Financial Institutional Securities Limited awarded as the Best Equity Advisor at Banking Financial Services and Insurance Awards 2019 presented by ET NOW

-ends-

The audited financial results are attached. The press release and audited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of March 31, 2019, the consolidated loan book stood at ~Rs. 141.1 BN, distressed credit business AUM at ~Rs. 140.4 BN, wealth management AUM at ~Rs. 418.9 BN, mutual fund AAUM at ~Rs. 87.1 BN.

The Group is headquartered in Mumbai and has a presence across 330 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.

Effective yield of upto 10.51%*

• Ratings - CRISIL AA/Stable by CRISIL and [ICRA] AA /(Stable) by ICRA - indicate high degree of safety regarding timely servicing of financial obligations
• Base Issue size of Rs. 200 crore with an option to retain oversubscription upto Rs. 800 crore aggregating upto Rs. 1,000 crore
• Minimum application size Rs. 10,000 collectively across all Series ranging from 24 to 60 months
• Allotment on first-come, first-serve basis;
• Investors can apply for NCDs only in dematerialized form
• No TDS applicable for NCDs held in dematerialized form

Mumbai, April 16, 2019: JM Financial Products Limited (the “Company”), a “Systemically Important Non – Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India, proposes to open on April 22, 2019, a public issue of secured, rated, listed, redeemable, Non-Convertible Debentures (“Secured NCDs”) of face value of Rs. 1,000 each with a Base Issue size of Rs. 200 crore with an option to retain oversubscription up to Rs. 800 crore aggregating upto Rs. 1,000 crore (“Tranche I Issue”), which is within the Shelf Limit of Rs. 2,000 crore.

The Issue is scheduled to close on May 21, 2019 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee.

Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also Group MD, JM Financial Group), said, “The Company has a diversified product mix, strong credit profile and a robust track record of growth and profitability. The robust lending book profile is reflected in growth, asset quality and returns. The Company’s Gross NPA as of December 31, 2018 stood at 0.3% of loan book. We shall continue to focus on risk adjusted profitability and sustainable growth. Our public issue of NCDs will enable us to further diversify our funding sources.”

The minimum application amount is Rs. 10,000 collectively across all Series on NCDs and in multiples of One (1) NCD of face value of Rs. 1,000 each after the minimum application. Allotment is on a first-come-first-serve basis (except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis). Investors have to apply for NCDs only in dematerialized form. 

Issue Structure:

In Series 1, interest will be paid on an annual basis at a rate of 9.90%; and the tenor is 24 months. The Effective Yield (per annum) is 9.89%.

In Series II, the tenor is 24 months and the redemption amount per NCD is Rs. 1,208.11. The Effective Yield (per annum) is 9.90%. 

In Series III, interest will be paid on an annual basis at a rate of 10.20% and the tenor is 36 months. The Effective Yield (per annum) is 10.19%. Call can be exercised any time after 24 months from the Deemed date of Allotment.

In Series IV, the tenor is 36 months and the redemption amount per NCD is Rs. 1,338.63. The Effective Yield (per annum) is 10.20%. Call can be exercised any time after 24 months from the Deemed date of Allotment. In case the Call is exercised, the Redemption Amount shall be computed to include an effective yield at 10.20% p.a. from the Deemed Date of Allotment till one day prior to the date of exercise of Call.

In Series V, interest will be paid on a monthly basis at a rate of 10.04% and the tenor is 60 months. The Effective Yield (per annum) is 10.51%. Call can be exercised any time after 36 months from the Deemed date of Allotment.

In Series VI, interest will be paid on an annual basis at a rate of 10.50% and the tenor is 60 months. The Effective Yield (per annum) is 10.49%. Call can be exercised any time after 36 months from the Deemed date of Allotment.

Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including INR 10,00,000 across all Series of NCDs in the Issue. Category III Investors (High Net-worth Individuals or HNIs) are defined as Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating to above INR 10,00,000 across all Series of NCDs in the Issue.

Ratings by CRISIL and ICRA indicate ‘High degree of safety’

The NCDs have been rated "CRISIL AA/STABLE" by CRISIL for an amount upto Rs. 2,000 crores vide its letter dated January 03, 2019 which has been revalidated on April 1, 2019 and have been rated “[ICRA] AA/STABLE” for an amount of upto Rs. 2,000 crores vide its letter dated January 9, 2019 and further revalidated on March 25, 2019.The rating of the NCDs by CRISIL and ICRA indicates high degree of safety regarding timely servicing of financial obligations.

The NCDs offered through the Shelf Prospectus and the Tranche I Prospectus are proposed to be listed on BSE Limited.

The Lead Managers to the Issue are A. K. Capital Services Limited, JM Financial Limited** and Trust Investment Advisors Private Limited.

* For Series V, 60 months – Monthly option

**In compliance with the provision to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with proviso to Regulation 5(3) of the SEBI ICDR Regulations, JM Financial Limited will be involved only in marketing of the Issue.

Notes to the Editor

About JM Financial Products Limited

JM Financial Products Limited (”the Company”, “JMFPL”) is a “Systemically Important Non – Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India. The Company has broadened its services from lease syndication and vehicle leasing to offering financial solutions through lending, syndication, participation in lending for securities issuance and distribution.

JMFPL is focused on offering a broad suite of secured and unsecured loan products which are customized to suit the needs of the corporates, SMEs and individuals. The Company broadly operates under four verticals viz. (i) fixed income division (structured financing) (“FID (structured financing)”); (ii) fixed income division (real estate financing) (“FID (real estate financing)”); (iii) capital market financing; and (iv) SME financing.

• FID (structured financing) – The Company’s wholesale financing segment to corporates includes all types of structured lending to companies across various sectors, promoter financing against listed / unlisted securities and property collateral, acquisition financing, subordinated or mezzanine financing, other secured lending and syndication.
• FID (real estate financing) – The Company’s real estate financing segment includes loan against land, loan against project at early stage, project funding, loan against ready residential / commercial property and loan against shares.
• Capital market financing – The Company’s capital market financing segment includes loans against securities, margin trade financing, arbitrage, buy now sell later, ESOP financing, broker financing, public offer financing and personal loans.
• SME Financing – Under this segment, The Company’s provides loans for varied purposes such as institutional finance, project finance and working capital finance to small and medium enterprises, loan against property and education institutional lending.

In addition to the above, we have ventured into real estate broking business under the brand name “Dwello”. Our Company, through Dwello, operates primarily in the residential real estate segment and assists buyers during all the stages of their real estate buying cycle. Further, we have entered in the housing finance business through our Subsidiary, JMFHL. JMFHL has been granted a license to operate as a housing finance company by the National Housing Bank of India in Fiscal 2018. The focus of our housing finance business would be to provide home loans to retail customer with a focus on affordable housing segment.

JMFPL’s loan book stood at Rs.6,693.4 crore as of December 31, 2018.

Ms. Manali Pilankar, Corporate Communications

Tel.: +91 22 6630 3475

Email: manali.pilankar@jmfl.com

Nishit Shah, CFO – JM Financial Products Limited

Tel : +91 22 6630 3522

Email : nishit.shah@jmfl.com

Mumbai, January 23, 2019: The Board of Directors of JM Financial Limited, at its meeting held today, approved the unaudited financial results for the quarter and the nine months ended December 31, 2018.

The Board of Directors have declared an interim dividend of Re. 0.50 per share of

the face value of Re.1/- each.

Summary of Consolidated results FY 19 – Q3 compared to FY 18 – Q3

            (Rs. in Cr)

Summary of Consolidated results FY 19 – 9M compared to FY 18 – 9M

            (Rs. in Cr)

1. Includes diminution / (gain) in fair value of investments (excluding security receipts) amounting to~ Rs.5 Cr for Quarter ended Dec 31, 2018 and ~Rs.3 Cr for quarter ended Dec 31, 2017.
2. On a conservative approach, group does not create deferred tax assets on any diminution due to change in fair value of investments; hence average tax rate is higher.
3. Adjusted for diminution / (gain) in fair value of investments (excluding security receipts) and is based on management reports and have not been subjected to review or audit.
4. Includes diminution / (gain) in fair value of investments (excluding security receipts) amounting to ~Rs.57 Cr for nine months ended Dec 31, 2018 and ~Rs.(4 Cr) for nine months ended Dec 31, 2017.

The Earnings per share and Diluted Earnings per share, for the nine months ended December 31, 2018 is Rs.5.28 and Rs.5.27 respectively. The consolidated net worth* as at December 31, 2018 stood at Rs.5,041 Cr and the debt equity (equity + minority interest of subsidiary companies) ratio is 2.15 times* and net debt equity of 1.87* times. The book value per share is Rs. 60. Our total loan book stood at Rs. 16,136 crore as of December 31, 2018 compared to Rs. 17,108** crore as of September 30, 2018. Gross NPA and Net NPA stood at 0.7% and 0.6% respectively as of December 31, 2018 compared to 0.5% and 0.4% respectively as of September 30, 2018.

* Computed after reducing goodwill of Rs.73.36 Cr from shareholder’s funds

**Does not include Public issue of NCDs Financing book

Commenting on the results and financial performance, Mr. Vishal Kampani, Managing Director, JM Financial Group, said,

“The tightness in liquidity for our NBFC businesses, volatility in the capital markets, extraordinary widening of credit spreads of AA rated entities over AAA rated entities and steep decline in deal closures in the investment banking have contributed to making the third quarter a challenging one. We continue to monitor the liquidity scenario and will remain prudent in our business planning over the next few quarters. At the same time we are hopeful about gradual improvement in credit spreads towards AA rated NBFCs and general liquidity position of NBFCs over calendar year 2019.”

Business Update

• Investment banking, Wealth Management and Securities business (IWS)

  Whilst our pipeline is robust, Investment banking had a weak quarter due to volatility in capital markets and delay in important deal closures. During the quarter, we managed the Buyback of equity shares of HCL Technologies Limited (~Rs. 4,000 Cr).

   

  The AUM/AUA of our wealth management business stood at Rs.42,738 Cr (excluding custody assets) as on December 31, 2018 as compared to Rs. 31,910  Cr as on December 31, 2017 and Rs. 43,941 Cr as on September 30, 2018.

  During the quarter, the average daily trading volume stood at Rs. 5,671 Cr.

                                                    

  Our loan book in the IWS segment stood at Rs. 7,387 Cr as on December 31, 2018.

   

• Mortgage Lending

  The total mortgage lending book stood at Rs. 8,641 Cr as on December 31, 2018. Our wholesale mortgage lending focuses on Tier - 1 cities, viz., Mumbai, Thane, Pune, Bangalore, Chennai, Hyderabad, Kolkata and NCR.  We are at the initial stages of our retail mortgage lending and are currently focused on acquiring the right talent, employing technology and processes before we ramp up our presence in terms of products and geography.

   

   

• Distressed Credit

During the quarter, Banks/NBFCs announced various NPA portfolio auctions and we continued to actively participate in the same. We closed 4 deals during the quarter, for 2 accounts as part of debt aggregation. During the quarter, the Asset Reconstruction business also saw recoveries from various accounts. Also, we continue to see a big opportunity arising out of Companies undergoing Corporate Insolvency Resolution Process in IBC-NCLT.

The outstanding Security Receipts (SRs) stood at Rs. 14,221 Cr as on December 31, 2018 as compared to Rs. 14,257 Cr as on September 30, 2018. The contribution of JM Financial Asset Reconstruction Company Limited stood at Rs. 3,095 Cr as on December 31, 2018 and Rs. 3,212 Cr as on September 30, 2018.

• Asset Management

The average AUM of our Mutual Fund schemes during the quarter ended December 31, 2018 stood at Rs. 11,364 Cr; comprising of Rs. 8,357 Cr in equity schemes (including arbitrage and balanced schemes) and Rs. 3,007 Cr in debt schemes (including liquid scheme). The average AUM of our Mutual Fund schemes during the quarter ended September 30, 2018 stood at Rs. 12,672 Cr; comprising of Rs.8,439 Cr in equity schemes (including arbitrage and balanced schemes) and Rs.4,233 Cr in debt schemes (including liquid scheme).

Borrowing Profile

We continued our efforts of diversifying our sources and maturities for our borrowing profile. Our long term borrowing as a proportion of total borrowing stood at approximately 68% as on December 31, 2018. During the quarter, we successfully concluded the second tranche of the public issue of secured Non-Convertible Debentures by JM Financial Credit Solutions Ltd and raised ~Rs.264 Cr (for the full year till date we have raised ~Rs.1,014 Cr).

Awards & Recognitions

• JM Financial awarded “Best M&A adviser” by The Asset Triple A Country Awards 2018.
• JM Financial awarded for the Best M&A deal  (Tata Chemicals US$ 400 million sale of the urea business to Yara International )– where we were the one of the financial advisors  by The Asset Triple A Country Awards 2018.
• JM Financial Services Limited has been recognized by BSE Ltd., amongst the Top Performers in the Equity Broking Segment (Retail Trading) in November 2018
• JM Financial Services Limited has been recognized by BSE Ltd., amongst the Top Performers in Primary Market Segment (Equity – IPO/FPO Bids - Members) in November 2018
• JM Financial Services Limited has been recognized by BSE Ltd., amongst the Top Performers in OTB Segment in November 2018

-ends-

The unaudited financial results are attached. The press release and unaudited financial results are available on our website www.jmfl.com

About JM Financial

JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business. 

As of December 31, 2018, the consolidated loan book stood at ~Rs. 161.4 BN, distressed credit business AUM at ~Rs. 142.2 BN, wealth management AUM at ~Rs. 427.4 BN, mutual fund AAUM at ~Rs. 113.6 BN.

The Group is headquartered in Mumbai and has a presence across 320 locations spread across 120 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.

For more information, log on to www.jmfl.com or contact:

Forward - Looking statements

This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.