JM Financial To Buy 17% In India Home Loan ltd

JM Financial is going to buy over 17 per cent stake in India Home Loan Ltd, by acquiring the full holding of one of the promoters and non-locked in shares of another. According to the share purchase agreement between the company and JM Financial, Anant Bhalotia is going to sell his entire shareholding of 8.77 per cent and Rishabh Siroya his 8.76 per cent of non locked-in shares.

Nonetheless, the valuation of the deal could not be ascertained. A total of 4,00,000 equity shares of Mr Siroya are locked in and not part of the sale transaction, it mentioned in a regulatory filing. After the sale of their respective stakes, Mr Bhalotia and Mr Siroya would no longer be the promoters of the company. Both have also tendered their resignations to the company board, effective from the completion of the sale.

The sale will take place after approval from the National Housing Bank of India. It will also allot 29,11,755 equity shares on a preferential basis which includes that to JM Financial (15,05,650 shares) at a value of Rs. 11.94 crore.

Nimesh Kampani-led JM Financial is a financial services group which offers investment banking, institutional equity sales, trading, research and broking, wealth management, asset management broking and NBFC services.

India Home Loan Limited (IHLL) is a Housing Finance Company which offers retail home loan product for cheap housing segment. Mumbai-headquartered IHLL gives home loans to customers and for the construction of a dwelling unit on an owned plot.

JM Financial share price ended 2.57 per cent lower at Rs. 79.60 apiece on the BSE, whose benchmark Sensex index finished up 0.52 per cent. As of now JM Financial price is trading below 0.38 per cent at Rs. 79.50. It is a multibagger stock identified by Dynamic Levels for this quarter. 

For further details on the stock kindly refer to JM Financial share price forecast.