JM Financial’s Rs 500-cr NCD issue opens for subscription; offers yield up to 10.40%

By: |
August 6, 2019 3:29 PM

The Tranche II Issue, with base issue size, is Rs. 100 crore also comes with an option to retain oversubscription up to Rs. 400 crore aggregating up to Rs. 500 crore which is within the Shelf Limit of Rs 2000 crore.

JM financial, NCD, retail investors, retail investors, Interest payments on NCD, latest news on DHFLThe allotment is on a first-come, first-serve basis

JM Financial Products has come out with a Rs 500-crore public issue of Non-Convertible Debentures (NCDs). The issue of secured, rated, listed and redeemable NCDs of the face value of Rs 1,000 launched today, 6th August, will remain open for subscription till September 4, 2019. Vishal Kampani, Managing Director, JM Financial Products Limited, said in a press release that this public issue of NCDs will further diversify their borrowing and investor mix.

It is the second tranche of JM Financial’s NCDs. Earlier in May, they raised the first tranche of Rs 387 crore and has taken approval to raise up to Rs 2,000 crore. The Non-Convertible Debentures of the face value of Rs 1,000 each with a Base Issue size of Rs 100 crore comes with an option to retain oversubscription up to Rs 400 crore aggregating up to Rs 500 crore (“Tranche II Issue”), which is within the Shelf Limit of Rs 2,000 crore. JM Financial Products Ltd is a flagship NBFC arm of the JM Financial Group, that offers integrated financial solutions through lending, syndication, participation in lending for securities issuance and distribution.

Even though the issue is scheduled to close on September 4, 2019, it can also have an early closure or extension as decided by the Board of Directors of the Company or the NCD Public Issue Committee constituted by the Board of Directors.

Here is all you need to know about this NCD issue:

  • The issue offers an effective yield of up to 10.40 per cent for Series V
  • It is rated by CRISIL as AA/Stable and by ICRA as AA /(Stable), which indicates safety regarding timely servicing of financial obligations.
  • The Tranche II Issue, with base issue size, is Rs 100 crore also comes with an option to retain oversubscription up to Rs. 400 crore aggregating up to Rs 500 crore, which is within the Shelf Limit of Rs 2000 crore.
  • The minimum application size Rs. 10,000 collectively across all Series
  • The tenor ranges between 38, 60 and 84 months
  • For Senior Citizens, an additional incentive of 0.10 per cent per annum is offered
  • The allotment is on a first-come, first-serve basis
  • Investors can apply for NCDs only in dematerialized form. Also, TDS will not be charged on NCDs held in dematerialized form.

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