Effective yield of upto 10.40%* for Series V
• Ratings - CRISIL AA/Stable by CRISIL and [ICRA] AA /(Stable) by ICRA - indicate
high degree of safety regarding timely servicing of financial obligations
• For Tranche II Issue, Base Issue size is Rs. 100 crore with an option to retain oversubscription upto Rs. 400 crore aggregating upto Rs. 500 crore which is within the Shelf Limit of Rs 2000 crore
• Minimum application size Rs. 10,000 collectively across all Series -Tenor ranging 38, 60 and 84 months
• Additional incentive of 0.10% p.a. to eligible Senior Citizens
• Allotment on first-come, first-serve basis;
• Investors can apply for NCDs only in dematerialized form
• No TDS applicable for NCDs held in dematerialized form
Mumbai, August 3, 2019: JM Financial Products Limited (the “Company”), a flagship NBFC arm of the JM Financial Group providing integrated financial solutions through lending, syndication, participation in lending for securities issuance and distribution proposes to open Tranche II on Tuesday, August 6, 2019, a public issue 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. 400 crore aggregating upto Rs. 500 crore (“Tranche II Issue”), which is within the Shelf Limit of Rs. 2,000 crore.
The Issue is scheduled to close on Wednesday, September 4, 2019 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 of Directors.
Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, “The Company has demonstrated a consistent track record of profitable growth. Its key strengths are diversified product portfolio and a strong credit profile. The Company’s gross NPA as of Q1FY20 stood at 0.1% of the loan book. The Company will persist with its focus on risk –adjusted profitability. Our public issue of NCDs will further diversify our borrowing and investor mix.”
The minimum application amount is Rs. 10,000/- collectively across all Series of NCDs and in multiples of One (1) NCD of face value of Rs. 1,000/- each after the minimum application. Allotment is on a first-come-first-serve basis (except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis). Investors have to apply for NCDs only in dematerialized form.
Issue Structure:
In Series 1, Coupon rate will be paid on an annual basis at a rate of 10.20%; and the tenor is 38 months. The Effective Yield (per annum) is 10.21%.
In Series II, the tenor is 38 months and the redemption amount per NCD is Rs. 1,360.54.
The Effective Yield (per annum) is 10.20%.
In Series III, Coupon rate will be paid on an annual basis at a rate of 10.30% and the tenor is 60 months. The Effective Yield (per annum) is 10.29%. Call option may be exercised by the Company at any time after 36 months from the Deemed Date of Allotment.
In Series IV, Coupon rate will be paid on monthly basis at a rate of 9.85%; and the tenor is 60 months. The Effective Yield (per annum) is 10.30%. Call option may be exercised by the Company at any time after 36 months from the Deemed Date of Allotment.
In Series V, The tenor is 84 months and the redemption amount per NCD is Rs. 2,000. The Effective Yield (per annum) is 10.40%.
Category III Investors (High Net-worth Individuals Investors or HNIs) are defined as Resident Indian Individuals and Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10,00,000 across all Series of NCDs in the Issue. Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10,00,000 across all Series of NCDs in the Issue.
Eligibility to receive Additional Incentives
The initial Allottees being Resident Indian Individuals forming part of Category III (High Net-worth Individual Investors other than Hindu Undivided Families) and Category IV (Retail Individual Investors other than Hindu Undivided Families) in the Tranche II Issue who are Senior Citizens (above 60 years of age) on the Deemed Date of Allotment shall be eligible for an additional incentive of 0.10% p.a. provided that, the NCDs issued under the proposed Tranche II Issue are continued to be held by such investors on the relevant Record Date for the relevant Coupon / Interest Payment Date for the relevant Series.
Accordingly, the amount payable on redemption of Secured NCDs issued under Series II and Series V Secured NCDs to such Senior Citizens is Rs. 1,364.45 and Rs. 2,012.70 per NCD respectively.
To clarify, additional Coupon/Interest will be paid either on the NCDs allotted on the Deemed Date of Allotment or held on the Record Date, whichever is lower, and will not be paid for the NCDs bought/acquired by the NCD Holders through secondary market/open market.
Ratings by CRISIL and ICRA 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 3, 2019 which has been revalidated on July 30, 2019 and have been rated “[ICRA] AA/STABLE” for an amount of upto Rs. 2,000 crores vide its letter dated January 9, 2019 and further revalidated on July 24, 2019. 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 II Prospectus read with the Shelf Prospectus are proposed to be listed on BSE Limited (“Designated Stock Exchange”).
The Lead Managers to the Issue are A. K. Capital Services Limited, JM Financial
Limited** and Trust Investment Advisors Private Limited
* For Series V, 84 months – Cumulative option
**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 (ICDR) 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. The Company has broadened its services from lease syndication and vehicle leasing to offering financial solutions through lending, syndication, participation in lending for securities issuance and distribution. JMFPL is focused on offering a broad suite of secured and unsecured loan products which are 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) (“FID (structured financing)”); (ii) fixed income division (real estate financing) (“FID (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.
• FID (real estate financing) – The Company’s real estate financing segment includes loan against land, loan against project at early stage, project funding, loan against ready residential / commercial property and loan against shares.
• Capital market financing – The Company’s capital market financing segment includes loans against securities, margin trade financing, arbitrage, buy now sell later, ESOP financing, broker financing, public offer financing and personal loans.
• SME Financing – Under this segment, The Company’s provides loans for varied purposes such as institutional finance, project finance and working capital finance to small and medium enterprises, loan against property and education institutional lending.
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, we have entered in the housing finance business through our 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 our 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. 5,503.4 crores (excluding impact of Ind AS adjustments viz interest accrued, expected credit loss and effective interest rate aggregating to ₹ 3.5 crore) as of June 30, 2019.
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