JM Financial to raise Rs650 crore from QIP issue
Mumbai: JM Financial’s Rs650 crore capital raising plan through a qualified institutional placement to international and domestic investors has got strong response with an over three-times oversubscription on the second day, investment bankers working on the issue said.
The company plans to raise Rs650 crore through the issue which opened on Tuesday and closes on Friday.
American investors account for bulk of the subscription, an i-banker said, adding there is strong investor demand across regions and categories, i-bankers said.
The company had in an exchange filing said it would use the capital to strengthen the balance sheet of its lending business, which has been a flagship business for the diversified group.
In the December quarter its lending book stood at Rs7,043 crore, of which corporate credit and structured financing stood at Rs2,766 crore, capital market lending at Rs2,380 crore and the real estate lending at Rs1,897 crore.
The company has set a floor price of Rs161.44 per share for the issue, which is being managed by the Investment Bank Credit Suisse and the domestic brokerage IDFC.
Earlier this month, JM had reported a 42% rise in net income at Rs168.10 crore for the December quarter, on an income of Rs837.73 crore that grew 41%.
The JM counter closed 0.87% up at Rs162.90 on the BSE today while the benchmark inched down 0.19%.
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