JM Financial Products Limited announces Tranche I Public Issue of upto Rs. 500 crore of Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs)
Mumbai, September 17, 2021: JM Financial Products Limited, the flagship NBFC arm of the JM Financial Group, announced Tranche – I public issue of Secured NCDs of face value of Rs. 1,000 each.
Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, "JM Financial Products has fortified its position across business verticals with a diversified product mix while maintaining a focus on risk adjusted profitable growth. The Company has maintained strong liquidity buffers. This public issuance will continue to help us diversify our borrowing and investor mix. Our strong balance sheet, well-capitalised and diverse set of businesses and strategic client-focused approach position us to drive sustainable value for our stakeholders.”
# debt excludes borrowing for episodic financing of Rs.949.55 crore as of June 30, 2021
The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 Months. Series I carries floating interest rate based on 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”) plus 3.15% spread. The Coupon for Series I NCDs will depend on the movement of the T-bill rate.
In addition, Series II, III and IV comes with fixed interest rate option in the tenor of 60 Months (Annual), 60 Months (Monthly) and 100 Months (Annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate).
*Issue Structure:
| Series | I | II | III | IV*** |
|---|---|---|---|---|
| Interest Type | Floating** | Fixed | Fixed | Fixed |
| Frequency of Interest Payment # | Annual | Annual | Monthly | Annual |
| Minimum Application | Rs. 10,000 (10 NCDs) across all Series collectively | |||
| Face Value/ Issue Price of NCDs (₹/ NCD) | Rs. 1,000 (1 NCD) | |||
| In Multiples of thereafter (₹) | Rs. 1,000 (1 NCD) | |||
| Tenor | 39 months | 60 months | 60 months | 100 months |
| Coupon (% per annum) for all categories of NCD Holders | 91-day T-bill* + 315 bps spread | 8.20% | 7.91% | 8.30% |
| Effective Yield for all categories of NCD Holders | - | 8.19% | 8.20% | 8.30% |
| Amount (₹ / NCD) on Maturity for all categories of NCD Holders | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
| Maturity / Redemption Date (Months from the Deemed Date of Allotment) | 39 months | 60 months | 60 months | 100 months |
| Put and Call Option | Not applicable | |||
* T-bill refers to 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL”) on their website http://www.fbil.org.in/ in the “T-Bill Curve” sub-tab or sub-menu under the main tab or main menu “Money Market/ Interest Rates” or on any other such part of the respective website of FBIL as may be reorganized from time to time. For more details about the Series I NCDs, please see "Additional terms specific to Series I NCDs" hereafter.
** The Coupon for Series I NCDs will depend on the movement of the T-bill rate. Actual coupon shall be derived by adding spread of 315 basis points to the reference 91DayT-Bill Benchmark i.e. simple average (rounded off to two decimal after zero) of the 91Day T-Bill Rate published by FBIL for last 10 working days prior to the respective Benchmark Determination Date
**For the purpose of Series I NCDs, the cash flows shall change in accordance with change in reference 91DayT-Bill Benchmark.
** The Floating Coupon to be rounded upto 2 decimals.
***The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
# With respect to Series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual Series will be made at the time of redemption of the NCDs.
With respect to Series where interest is to be paid on a monthly basis, relevant interest will be calculated from the first day till the last date of every month during the tenor of such NCDs, and paid on the first day of every subsequent month. For the first interest payment for NCDs where interest is to be paid on a monthly basis, interest from the Deemed Date of Allotment till the last day of the subsequent month will be clubbed and paid on the first day of the month next to that subsequent month. The last interest payment will be made at the time of redemption of the NCDs.
Note: If the Deemed Date of Allotment undergoes a change, the interest payment dates, Redemption Dates and other cash flow workings shall be changed accordingly.
Note: The amounts payable under all Series are subject to applicable tax deducted at source, if any.
Category I – Institutional Investors, Category II – Non-Institutional Investors, Category III – High Net-Worth Individuals and Category IV – Retail Individual Investors are eligible to apply in the Tranche I Issue.
The Lead Managers to the Issue are Equirus Capital Private Limited and JM Financial 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 25(3) of the SEBI NCS Regulations, as amended, JMFL will be involved only in marketing of the Issue.
The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment / prepayment of interest and principal of the borrowings of the Company (at least 75%) and for general corporate purposes (up to 25%).
Notes to the Editor: About JM Financial Products Limited
Our Company is a “Systemically Important Non – Deposit Taking NBFC” (NBFC-ND-SI) registered with the Reserve Bank of India and operates under the “JM Financial” franchise. Incorporated as J.M. Lease Consultants Private Limited on July 10, 1984, we are focused on offering a broad suite of loan products which are customized to suit the needs of the corporates, institutions, SMEs and individuals. Our Company broadly operates under the following verticals viz.
(i) Bespoke financing; (ii) Real estate financing; (iii) Capital market financing; (iv) Retail mortgage financing; and (v) Financial institution financing.
In addition to the above, we have ventured into digital led real estate broking/consulting business under the brand name “Dwello”. Our 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. The focus of our housing finance business would be to provide home loans to retail customers with a focus on affordable housing segment. We have also entered into the institutional fixed income business. The focus of the business is on mobilizing debt capital for corporates by way of distribution to various investor segments, sales and distribution in secondary bond markets and credit research.
JMFPL’s aggregate loan book (excluding episodic financing) stood at Rs. 3,228.11 crore* as of June 30, 2021.
*Excluding episodic financing of Rs.944.84 crore
For further information, please contact:
Manali Pilankar, VP -Corporate Communications Tel: +912266303475 / 9702292446 Email: manali.pilankar@jmfl.com
| Nishit Shah, CFO – JM Financial Products Limited Tel: +912266303522 Email: nishit.shah@jmfl.com
|
Disclaimer:
# ALLOTMENT ON FIRST CUM FIRST SERVE BASIS: Allotment on first come first serve basis in the public issue of debt securities shall be made on the basis of date of upload of each application into the electronic book of the stock exchange. However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis. For further details refer section titled “Issue Related Information” on page [54] of the Tranche I Prospectus dated September 16, 2021.
*The Tranche I Issue shall remain open for subscription on Working Days from 10:00 a.m. to 5:00 p.m. (Indian Standard Time), during the period indicated in this Tranche I Prospectus, except that the Tranche I Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the Company ("Board") or the NCD Public Issue Committee of the Board of Directors of the Company. In the event of such an early closure of or extension of the Tranche I Issue, the Company shall ensure that notice of such early closure or extension is given to the prospective investors through an advertisement in all the newspapers in which pre-Issue advertisement and advertisement for opening or closure of the Tranche I Issue have been given, on or before such earlier date of the closure or extended date of the Tranche I Issue, in terms of Schedule V of the SEBI NCS Regulations. Applications through the UPI route will be accepted, subject to compliance by the investor with the eligibility criteria and due procedure for UPI applications prescribed by SEBI. Applications Forms for the Tranche I Issue will be accepted only from 10:00 a.m. till 5.00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE, on Working Days during the Issue Period. On the Tranche I Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3.00 p.m. (Indian Standard Time) and uploaded until 5:00 p.m. (Indian Standard Time) or such extended time as may be permitted by BSE. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5:00 p.m. (Indian Standard Time) on one Working Day post the Tranche I Issue Closing Date. For further details, see “Issue Related Information” on page 54 of the Tranche I Prospectus dated September 16, 2021.
#For further details please refer Shelf Prospectus and Tranche I Prospectus both dated September 16, 2021
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