JM Financial Credit Solutions Rs. 750cr NCD Issue oversubscribed 2.19 times

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By Vivek K. Mobile: 09920183006 Email:indianshowbusiness@gmail.com

Mr. Shashwat Belapurkar, CEO, JM Financial Credit Solutions Limited, said, “We are overwhelmed by the response to JM Financial Credit Solutions Ltd.’s maiden Public Issue of NCDs, which also has the distinction of being the first from the JM Financial Group. Overall, the Public Issue of NCDs (including Greenshoe Option) was oversubscribed 2.19 times leading to a total subscription of Rs. 1,646 crore. Retail Investors (Category IV) and HNIs (Category III) have invested a total amount of around Rs. 1,468 crore, which is more than total NCD Issue size of Rs. 750 crore (including Greenshoe Option). The oversubscription of over 3.6 times in the Retail Investors category justifies our higher proportion of 30% allocation ratio to Retail Investors in the basis of allotment. The success of our NCD Public Issue sets a new benchmark for a wholesale NBFC such as JMFCSL that provides integrated financial solutions to real estate developers with a focus on residential project financing. This is a testimony to the success of the transformational changes in the real estate sector and will further deepen the Indian debt markets inviting meaningful long term wider public participation in debt offerings from wholesale NBFCs.”

 

BSE link

https://www.bseindia.com/markets/publicIssues/BSEcumu_demand.aspx?ID=1641

 

 

JM FINANCIAL CREDIT SOLUTIONS LIMITED

BSE Demand Schedule

As on 29 May 2018 | 04:24 PM

Sr.No.

Category

No.of Bonds/NCDs offered/ reserved

No. of Bonds/NCDs odered for

No. of times subscribed

1 category1 600000

553050

0.92

1(a) Public financial institutions, scheduled commercial banks, Indian multilateral and bilateral development financial institution, which are authorized to invest in the NCDs 1000
1(b) Provident funds & pension funds with a minimum corpus of Rs 250.00 Millions, superannuation funds and gratuity funds, which are authorized to invest in the NCDs 51000
1(c) Alternative Investment Funds, subject to investment conditions applicable to them under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012; 0
1(d) Resident Venture Capital Funds registered with SEBI; 1000
1(e) Insurance companies registered with the IRDA 0
1(f) State industrial development corporations 0
1(g) Insurance funds set up and managed by the army, navy, or air force of the Union of India; 50
1(h) Insurance funds set up and managed by the Department of Posts, the Union of India 0
1(i) Systemically Important Non-Banking Financial Company registered with the RBI and having a net-worth of more than Rs. 5,000 million as per the last audited financial statements 250000
1(j) National Investment Fund set up by resolution no. F.No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India 0
1(k) Mutual funds registered with SEBI 250000
2 category2 600000

1219216

2.03

2(a) Companies within the meaning of section 2(20) of the Companies Act, 2013; statutory bodies/ corporations and societies registered under the applicable laws in India and authorised to invest in the NCDs 922190
2(b) Co-operative banks and regional rural banks 25000
2(c) Trusts including Public/private charitable/religious trusts which are authorized to invest in the NCDs 209899
2(d) Scientific and/or industrial research organizations, which are authorized to invest in the NCDs 0
2(e) Partnership firms in the name of the partners 33100
2(f) Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) 0
2(g) Association of Persons 29027
2(h) Any other incorporated and/ or unincorporated body of persons 0
3 category3 900000

6559769

7.29

3(a) Resident Indian individuals applying for an amount aggregating to more than Rs. 10 lakhs across all Series of Secured NCDs in this Issue 6269639
3(b) Hindu undivided families through the Karta applying for an amount aggregating to more than Rs. 10 lakhs across all Series of Secured NCDs in this Issue 290130
4 category4 900000

8146030

9.05

4(a) Resident Indian individuals applying for an amount aggregating upto and including Rs. 10 lakhs across all Series of Secured NCDs in this Issue 7365845
4(b) Hindu undivided families through the Karta applying for an amount aggregating upto and including Rs.10 lakhs across all Series of Secured NCDs in this Issue 780185

Total

3000000

16478065

5.49

 

 

 

JM Financial Credit Solutions Limited (the “Company”), the NBFC arm of the JM Financial Group providing integrated financial solutions to real estate developers, proposes to open on May 28, 2018, a public issue of secured, rated, listed redeemable, Non-Convertible Debentures of face value of Rs. 1,000 each (“Secured NCDs”) with a Base Issue size of Rs. 300 crore with an option to retain oversubscription upto Rs. 450 crore aggregating upto Rs. 750 crore (“Tranche I Issue”).

 

Ratings by ICRA & India Ratings indicate ‘High degree of safety’

The Secured NCDs proposed to be issued under the Tranche I Issue have been rated [ICRA] AA/Stable by ICRA for an amount of upto Rs. 2,000 crore vide its letter dated April 27, 2018 and further reaffirmed by letter dated May 11, 2018, and have been rated IND AA/Stable by India Ratings for an amount Rs. 2,000 crore vide its letter dated April 27, 2018 which has been superseded by letter dated May 10, 2018. The rating of the Secured NCDs by ICRA and India Ratings indicates high degree of safety regarding timely servicing of financial obligations.

 

Issue Structure:

In Option 1, interest will be paid on an annual basis at a rate of 9.25%; and the tenor is 38 months. The Effective Yield (per annum) is 9.26%.

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% and the tenor is 60 months. The Effective Yield (per annum) is 9.49%.

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

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

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

 

[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].

 

Atleast 75% of the net proceeds of the Public Issue of NCDs will be used for the purpose of onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company. A maximum of up to 25% will be used for general corporate purposes.

 

The NCDs offered through the Shelf Prospectus and the Tranche I Prospectus are proposed to be listed on BSE Limited.

 

The Lead Managers to the Issue are A. K. Capital Services Ltd., JM Financial Limited, Edelweiss Financial Services Limited and Trust Investment Advisors Private Limited. In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with proviso to Regulation 5(3) of the SEBI ICDR Regulations, JM Financial Limited will be responsible only in marketing of the Issue.

About JM Financial Credit Solutions Limited

The Company is a Systemically Important Non–Deposit taking Non–Banking Financial Company (“NBFC ND – SI”) forming part of the JM Financial group. It is a wholesale finance NBFC and provides integrated financial solutions to real estate developers with a focus on residential project financing such as funding real estate developers at various stages in the life cycle of a real estate project. It commenced lending to real estate developers in 2014 and its clients are located in Mumbai, Pune, Bengaluru, Chennai, Hyderabad, NCR and Kolkata. For the Fiscal 2018, its loan book stood at ₹ 7,338.88 crore as compared to ₹ 5,658.15 crore as of Fiscal 2017. It provides secured and unsecured lending to the real estate developers. Its product portfolio consists of Project finance; Loans against property; Loans against shares; Project at early stage loans; and Loans against land

Disclaimer

JM Financial Credit Solutions Limited, subject to market conditions and other considerations, is proposing a public issue of secured redeemable non-convertible debentures (“NCDs”) and has filed the Shelf Prospectus dated May 16, 2018 and Tranche 1 Prospectus dated May 16, 2018 with the Registrar of Companies, Maharashtra, Mumbai, BSE Limited and SEBI. The Shelf Prospectus and Tranche 1 Prospectus both dated May 16, 2018 are available on our website at www.jmfinancialcreditsolutions.com, on the website of the stock exchanges at www.bseindia.com and the respective websites of the lead managers at www.akgroup.co.inwww.jmfl.comwww.edelweissfin.com and www.trustgroup.in. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Shelf Prospectus and Tranche 1 Prospectus both dated May 16, 2018. Investors should note that investment in NCDs involves a high degree of risk and for details relating to the same, please refer to the Shelf Prospectus dated  May 16, 2018, including the section ‘Risk Factors’ beginning on page 13 of the Shelf Prospectus dated May 16, 2018.

 

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