Home >Markets >Stock Markets >JM Financial launches QIP to raise $100 mn
Photo: Mint
Photo: Mint

JM Financial launches QIP to raise $100 mn

JM Financial sets a floor price of Rs66.72 per share for the QIP offering

MUMBAI : JM Financial Ltd on Tuesday announced a qualified institutional placement (QIP) to raise about $100 million from financial institutions. Investment bank IDFC Securities is advising the financial services firm on the fund-raising.

A QIP is a tool used by listed companies to sell shares or other securities that are convertible into stocks to qualified institutional buyers such as mutual funds.

JM Financial has set a floor price of 66.72 per share for the offering. It can offer investors a discount of up to 5% on the floor price, according to Securities and Exchange Board of India (Sebi) regulations.

On Tuesday, shares of JM Financial closed at 70.90 apiece, down 1.46% on BSE.

In recent weeks, several lenders have announced fund-raising plans with an eye on bolstering balance sheets to deal with contingencies and opportunities arising out of the covid-19 pandemic.

Last month, Kotak Mahindra Bank raised 7,445 crore through a QIP, selling shares to institutional investors such as CPPIB, Oppenheimer, and ICICI Prudential Asset Management Co. In May, IDFC First Bank Ltd raised 2,000 crore through a preferential allotment of shares to a group of investors including private equity firm Warburg Pincus.

Several non-bank lenders like Mahindra Finance and Shriram Transport Finance also plan to raise funds through rights issues.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

My Reads Redeem a Gift Card Logout