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.

JM Financial Happy after making the ARC its Subsidiary

JM Financial has taken in JM Financial Asset Reconstruction Company Private Limited as a subsidiary with effect from September 30, 2016.

The shareholding of JM Financial in the Asset Reconstruction Company has increased from 50% to 50.01%.

Today, JM Financial share price opened at Rs. 65 against its previous close of Rs. 64.65. The stock hit an intraday high of Rs. 73.20. The stock's opening price had remained its intraday low till now. So far, 28 lakhs shares have changed hands over the NSE counter as compared to the twenty day average of 8.5 lakhs.

JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients.

Also, Former Citigroup’s chief executive officer Vikram Pandit’s declaration of buying a 3 percent stake in the financial services company, JM Financial is a big boost for the company’s ambitious plan to get into the banking sector. The company is being run by Nimesh Kampani, a friend of Vikram Pandit.

The ex- Citigroup’s CEO has decided to invest $110 million in JM Financial and non-banking financial company (NBFC). He will be nominated as non-executive chairman of the JM Financial’s proposed bank. Vikram Pandit will also invest up to $200 million through his global funds. In consequence, he will get 3 percent stake in the parent company and 50 percent stake in JM’s NBFC.

Vikram Pandit’s presence in JM Financial will play a vital role since he has headed one of the biggest global banks. He is credited for ridding the bank out of the financial chaos it was inflicted upon following the sub-prime crisis in the U.S. Therefore, the utter size of the company he has handled will make his presence a strong case for obtaining a banking license, since the size of the proposed bank will be small compared to Citigroup.

JM Financial is the Multibagger stock picked by Dynamic Levels for the month. For the details on the stock, visit JM Financial share price history page of Dynamic Levels website.