The shares of the leading investment banking firm plummeted by 5.4 percent from an intraday low after the Securities and Exchange Board of India (SEBI) barred the company from taking any new mandate as the lead manager.
With a market capitalization of Rs 7,952.44 crore, the shares of JM Financial Ltd were trading in red at Rs 83.22 per share, decreasing around 5 percent as compared to the previous closing price of Rs 87.28 apiece.
The shares of the company have seen a bearish movement after the Securities and Exchange Board of India (SEBI) barred JM Financial Ltd. from taking any new mandate as the lead manager in the public issue of debt securities until March 31, 2025, or any other date further specified by the regulator.
Furthermore, SEBI’s order that JM Financial may continue to act as a lead manager to the public issue of debt securities for 60 days with regard to existing mandates and not new ones.
According to a JM Financial statement, the ruling emphasizes that the orders included therein are restricted to the company’s function as a lead manager in the public issue of debt securities and do not apply to other operations, such as serving as a lead manager in the public issue of equity instruments.
Looking forward into the company’s financial, revenue surged drastically by 49 percent from Rs 846 crore in Q4FY23 to Rs 1,261 crore in Q4FY24 but during the same period, net profit shrunk more than 2000 percent from a profit of Rs 32 crore to a loss of Rs 674 crore.
Mortgage lending accounted for 39% of the company’s revenue in FY23, followed by investment banking at 37%. Asset & Wealth Management is the third largest category, accounting for 19% of total revenue. Although Investment Banking is the Company’s second biggest revenue division, it accounted for 65% of FY23 Profits After Tax.
JM Financial Limited is a holding company that provides equity and debt capital market advisors, capital market transaction management, mergers and acquisitions, advisory, private equity syndication, corporate finance advisory services, and private equity fund administration and management.
Written by:- Abhishek Singh
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