JM Financial launches QIP to raise $100 mn1 min read . Updated: 09 Jun 2020, 10:53 PM IST
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.