JM Financial to raise ₹300 cr in debt

Mid-sized non-banking lender JM Financial will hit the debt market with a ₹100 crore NCD issue on Thursday.

This is the third tranche of its planned fully-secured NCD (non-convertible debentures) sale this fiscal year and the issue has a greenshoe option of an additional ₹200 crore, taking the overall issue to ₹300 crore, the company said in a statement on Wednesday.

The issue will be sold by JM Financial Products, a subsidiary of JM Financial, and will give the investors an annual yield of up to 10 per cent.

The company has so far raised over ₹500 crore through NCD sales this fiscal year.

The issue comes with a tenor of 24 months to 120 months and offers interest payment on a monthly and annual basis, offering a coupon of 9.29 to 10 per cent.

JM Financial Managing Director Vishal Kampani said the latest debt sale will help the company further diversify the borrowing and investor mix.

The company’s debt/equity ratio stands at 2.4 times.

The issue, rated by both Crisil and Icra, will be listed on the BSE, and is managed by AK Capital Services, JM Financial and Trust Investment Advisors.

JM Financial Product had a loan book of ₹4,137.2 crore as of December quarter.

Shares of JM Financial were trading 0.8 per cent lower at ₹114.15 on the BSE.