JM Fin appoints banks for $100mn QIP fundraise

MUMBAI: JM Financial Ltd has started work on its qualified institutional placement (QIP) offering that could see the firm raise $100 million, three people aware of the development said.

“JM Financial’s board had last month approved raising of funds through sale of fresh equity shares. Subsequently, the company had been talking to investment banks for the QIP and they have appointed Credit Suisse and IDFC Bank and has started work on the same. They intend to raise almost $100 million (around ₹650 crore),” said one of the three people cited above, requesting anonymity as he is not authorised to speak to reporters.

QIP is a capital-raising tool via which listed companies can sell equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.

The company will soon begin investor roadshows for the proposed QIP offering, he said.

According to JM Financial’s stock exchange filings, the company is seeking shareholder approvals for the QIP fundraising through a postal ballot, which closes on January 29.

JM Financial had a consolidated loan book of ₹12,365 crore, across real estate, capital market and corporate credit, as of September 30, 2017, according to an investor presentation of the company.

Credit Suisse declined to comment on the development. Emails sent to JM Financial and IDFC Bank did not elicit any response till the time of going to press.