During Monday’s trading session, the shares of an integrated and diversified financial services group surged 6.4 percent to hit a new 52-week high at Rs. 168.85 on BSE, after the company announced that RBI has lifted restrictions on its material subsidiary.
With a market cap of Rs. 15,249 crores, at 11:46 am., the shares of JM Financial Limited were trading in the green at Rs. 159.55, up by nearly 0.6 percent, compared to its previous closing price of Rs. 158.7.
What’s the news:
According to the latest regulatory filings with the stock exchanges, the Reserve Bank of India (RBI) lifted the restrictions with immediate effect it had imposed on JM Financial Products Limited, a material subsidiary of JM Financial Limited.
These restrictions, imposed by RBI on 5th March, involved financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO) of shares as well as against subscription to debentures.
This action was necessitated by certain serious deficiencies observed in the loans sanctioned by the company for IPO financing and NCD subscriptions. The RBI conducted a limited review of the company’s financial records based on information provided by the Securities and Exchange Board of India (SEBI).
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Financials:
The company experienced a marginal growth in its total income, showing a year-on-year increase of around 1 percent from Rs. 1,067 crores in Q1 FY24 to Rs. 1,077 crores in Q1 FY25.
Similarly, its net profit increased slightly during the same period from Rs. 177 crores to Rs. 187 crores, representing a growth of nearly 5.6 percent YoY.
JM Financial Limited (JMFL) plans to acquire up to a 48.96 percent stake from minority shareholders of JM Financial Credit Solutions (JMFCSL) and intends to sell up to a 71.8 percent stake in JM Financial Asset Reconstruction Company Limited (JMFARC) to JMFCSL, pending regulatory and other approvals.
JM Financial is focused on expanding its capital markets, broking, wealth and asset management, and private credit syndication businesses, with increased investments in these areas. Additionally, there are strong
growth opportunities in the affordable home loan sector. Stock Performance
The stock has delivered positive returns of nearly 94 percent in one year, as well as around 92.2 percent returns in the last six months. So far in 2024, the shares of JM Financial have given about 57.2 percent of positive returns.
About the company:
JM Financial Limited is engaged in holding company activities, advisors in equity and debt capital markets, management of capital markets transactions, mergers & acquisitions, advisory, private equity syndication, corporate finance advisory business, administration & management of private equity funds, private wealth management business and PMS.
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Written by Shivani Singh
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