JM Mutual Fund, the asset management arm of the JM Financial has identified three institutional investors namely, Valiant Capital Partners, Blue Ridge Capital and Eton Park, who propose to participate in the equity capital of the company to the extent of 4% each in the equity, at a premium, on a fully diluted equity capital of the business. These investors will be contributing together Rs 111.7 crore giving a total post money valuation of Rs. 931 crore which works out to 7.32% of the current assets under management. The AUM has stabilised at around Rs.11,000 crore due to bearish markets and lower levels of investor activity.
Nimesh Kampani, CMD, JM Financial said, ?The Group is in the growth phase with its established businesses expanding and new ventures evolving steadily. Recently, we acquired the entire capital in the institutional securities business; we have expanded our presence in mutual fund, equity brokerage and private wealth management businesses, to service our clients better. We have also strengthened our talent pool by increasing the number of employees in our team. All these measures have been adopted with the objective of building long-term business, expanding our bouquet of services and solidifying our team. Such efforts require significant investments resulting in increased costs in the near term. However, we maintain a positive view on the Indian economy and the capital markets. We believe that even these adverse market conditions present several hidden opportunities and given our diverse line of businesses we will continue to identify and take advantage from these opportunities, thereby generating value for our shareholders.?
JM Financial after announcing the Q1 results said in a release that the investors have signed the non-binding term sheet with the asset management company. The said transaction is subject to signing of the definitive agreements and satisfactory receipt of all regulatory.