Effective yield of up to 10.00% p.a.*
Mumbai, February 12, 2020: JM Financial Products Limited (the “Company”), a subsidiary of JM Financial Limited and a NBFC having a diversified product mix proposes to open Tranche III Issue on Thursday, February 13, 2020, of Secured, Rated, Listed, Redeemable, Non-Convertible Debentures (“Secured NCDs”) of face value of Rs. 1,000 each with a base Issue size of Rs 100 crore with an option to retain oversubscription up to Rs 200 crore aggregating up to Rs 300 crore, which is within the Shelf Limit of Rs 2000 crore.
The Tranche III Issue is scheduled to close on Monday, March 9, 2020 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the NCD Public Issue Committee constituted by the Board.
Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, “JM Financial Products has strengthened its position across business verticals with a diversified product mix. The Company has a debt / equity of 2.4x and has maintained strong liquidity buffers. We will continue to focus on risk adjusted profitable growth. This public issuance shall help us to further diversify our borrowing and investor mix.”
* for Series X – Tenor 120 Months with monthly interest payout option
**Allotment on the basis of date of upload of each application into the electronic book of the stock exchange except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis
Issue Structure:
**** The Company shall allocate and allot Series VI Secured NCDs wherein the Applicants have not indicated their choice of the relevant Secured NCD Series. If the Deemed Date of Allotment undergoes a change, the coupon payment dates, Redemption Dates, Redemption Amounts and other cash flow workings shall be changed accordingly.
Ratings by ICRA and CRISIL indicate ‘High degree of safety’
The NCDs have been rated "CRISIL AA/STABLE" by CRISIL for an amount upto Rs. 2,000 crores vide its letter dated January 03, 2019 which has been revalidated on July 30, 2019 and January 21, 2020 and have been rated “[ICRA] AA/STABLE” by ICRA for an amount of upto Rs. 2,000 crores vide its letter dated January 9, 2019 and further revalidated on July 24, 2019, January 14, 2020 and February 04, 2020. The rating of the NCDs by CRISIL and ICRA indicates high degree of safety regarding timely servicing of financial obligations.
The NCDs offered through the Tranche III Prospectus read with the Shelf Prospectus are proposed to be listed on BSE Limited.
The Lead Managers to the Issue are A. K. Capital Services Limited, JM Financial Limited*** and Trust Investment Advisors Private Limited
***In compliance with the proviso to Regulation 21A (1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with Regulation 23(3) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, JM Financial Limited will be involved only in marketing of the Issue.
Notes to the Editor: About JM Financial Products Limited #
JM Financial Products Limited (“The Company”, “JMFPL”) is a “Systemically Important Non –Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India. JMFPL is focused on offering a broad suite of loan products customized to suit the needs of the corporates, SMEs and individuals. The Company broadly operates under four verticals viz. (i) fixed income division (structured financing); (ii) fixed income division (real estate financing); (iii) capital market financing; and (iv) SME financing.
FID (structured financing) – The Company’s wholesale financing segment to corporates includes all types of structured lending to companies across various sectors, promoter financing against listed / unlisted securities and property collateral, acquisition financing, subordinated or mezzanine financing, other secured lending and syndication.
In addition to the above, the Company has ventured into real estate broking business under the brand name “Dwello”. The Company, through Dwello, operates primarily in the residential real estate segment and assists buyers during all the stages of their real estate buying cycle. Further, the Company has entered in the housing finance business through its subsidiary, JM Financial Home Loans Limited (JMFHL). JMFHL has been granted a license to operate as a housing finance company by the National Housing Bank of India in Fiscal 2018. The focus of the housing finance business would be to provide home loans to retail customer with a focus on affordable housing segment.
JMFPL’s loan book stood at Rs. 4,137.2 crores (excluding impact of Ind AS adjustments viz interest accrued, expected credit loss and effective interest rate aggregating to ₹ (7.1) crore) as of December 31, 2019.
# For further details, please refer to the Shelf Prospectus dated April 11, 2019 and the Tranche III Prospectus dated February 10, 2020.
For further information, please contact:
Ms. Manali Pilankar, Corporate Communications
Tel: +91 22 6630 3475
Email: manali.pilankar@jmfl.com
Nishit Shah, CFO – JM Financial Products Limited
Tel: +91 22 6630 3522
Email: nishit.shah@jmfl.com
Disclaimer:
DISCLAIMER CLAUSE OF ICRA : ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is’ without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its Group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.
DISCLAIMER CLAUSE OF CRISIL : CRISIL has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by CRISIL from sources which it considers reliable (Information). A CRISIL rating reflects CRISIL's current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL. CRISIL does not guarantee the completeness or accuracy of the information on which the rating is based. A CRISIL rating is not a recommendation buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL especially states that it has no liability whatsoever to the subscribers / users / transmitters / distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and / or registration to carry out its business activities in this regard. JM Financial Products Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India. Current rating status and CRISIL Ratings rating criteria are available without charge to the public on the CRISIL web site, www.crisil.com.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the disclaimer clause of the BSE.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the BSE to use their network and software of the online system should not in any way be deemed or construed as compliance with various statutory requirement approved by the Exchange; nor does it any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company.
DISCLAIMER CLAUSE OF RBI: The Company is having a valid Certificate of Registration dated March 2, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the Company or for the correctness of any of the statements or representations made or opinions expressed by the Company and for repayment of deposits/ discharge of liability by the Company. It is distinctly understood that the Shelf Prospectus and the Tranche III Prospectus should not in any way be deemed or construed to be approved or vetted by RBI.
DISCLAIMER: JM Financial Products Limited, subject to market conditions and other considerations, is proposing a public issue of Secured, Listed, Rated, Redeemable Non-Convertible Debentures and has filed the Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020 with the Registrar of Companies, Maharashtra, Mumbai, BSE Limited and SEBI. The Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020 are also available on the Company’s website at www.jmfinancialproducts.com, on the website of the BSE Limited at www.bseindia.com and the respective websites of the lead managers at www.akgroup.co.in, www.jmfl.com and www.trustgroup.in. Investors proposing to participate in the Tranche III Issue should invest only on the basis of information contained in the Shelf Prospectus dated April 11, 2019 and Tranche lII Prospectus dated February 10, 2020 Investors should note that investment in NCDs involves a high degree of risk and for details relating to the same, please refer to the Shelf Prospectus dated April 11, 2019 and Tranche III Prospectus dated February 10, 2020, including the section 'Risk Factors' beginning on page 12 of the Shelf Prospectus dated April 11, 2019, and section titled "Material Developments" on page 24 of the Tranche III Prospectus dated February 10, 2020 .