JM Financial Credit NCD offers to open on May 28

JM Financial Credit Solutions Ltd. (JMFCSL) is a systematically important non-deposit taking non-banking financial arm of JM Financial group. It is engaged in providing integrated financial solutions to real estate developers with a focus on residential project financing. As on March 31, 2018, it has a list of 77 borrowers, loan order book of Rs 7,339 crore, net NPA stood at 0.9 per cent and debt equity ratio of 3.2.

JMFCSL is coming with its maiden debt offer by way of Tranche I of secured, rated, listed redeemable non-convertible debentures having face value of Rs 1,000 each to mobilise Rs 300 crore. It has a green shoe option to retain oversubscription up to Rs 450 crore thus making the total issue size of Rs. 750 crore. This size is within the shelf limit of Rs 2,000 crore. Minimum application is to be made for 10 NCDs (i.e. Rs 10,000) and in multiple of 1 NCD (i.e. Rs 1,000) thereon, thereafter. Issue opens for subscription on May 28, 2018 and will close on or before June, 20, 2018. Post allotment, these debentures will be listed on BSE. Issue is available for allotment only under demat mode. Funds mobilised through this offer will be used for business activities/repayment-prepayment of existing borrowings and general corpus fund.

Issue Structure is as under: (with details of tenure, coupon rates and effective yields)

In Option I, interest will be paid on an annual basis at a rate of 9.25 per cent; and the tenor is 38 months. The Effective Yield (per annum) is 9.26 per cent.

In Option II, interest will be paid on a cumulative basis and the tenor is 38 months. The redemption amount per NCD is Rs 1,323.39.

In Option III, interest will be paid on an annual basis at a rate of 9.50 per cent and the tenor is 60 months. The Effective Yield (per annum) is 9.49 per cent.

In Option IV, interest will be paid on a monthly basis at a rate of 9.11 per cent and the tenor is 60 months. The Effective Yield (per annum) is 9.49 per cent.

In Option V, interest will be paid on an annual basis at a rate of 9.75 per cent and the tenor is 120 months. The Effective Yield (per annum) is 9.74 per cent.

In Option VI, interest will be paid on a monthly basis at a rate of 9.34 per cent and the tenor is 120 months. The Effective Yield (per annum) is 9.74 per cent.

[Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and HUFs through the Karta applying for an amount aggregating for an amount up to and including Rs 10 lakh, across all Series of NCDs. Category III Investors (High Net-worth Individuals or HNIs) Investors are Resident Indian individuals and HUFs through the Karta applying for an amount above Rs 10 lakh, across all Series of NCDs].

Company will give interest @8 per cent on allotment money and @5 per cent on refund amount.