Mumbai: JM Financial Limited announced on September 28, 2026, that its wholly-owned subsidiary, JM Financial Credit Solutions Limited (JMFCSL), has acquired 16,25,85,928 equity shares of JM Financial Asset Reconstruction Company Limited (JMFARC) for ₹162.59 crore. The shares were allotted on a rights basis.
Acquisition Details
JMFCSL's investment increases its shareholding in JMFARC from 81.77 per cent to 84.87 per cent. JMFARC is a subsidiary of JMFCSL and a step-down subsidiary of JM Financial.
JMFARC Background
JMFARC operates in the financial services industry as an asset reconstruction company, registered with the Reserve Bank of India under the SARFAESI Act, 2002. It focuses on acquiring stressed assets from banks and financial institutions, and implementing resolution strategies for these assets.
Financial Overview
As of March 31, 2026, JMFARC reported Assets Under Management (AUM) of ₹11,853 crore and a turnover of ₹223.95 crore. The company was incorporated on September 19, 2007, and has a presence solely in India.
Turnover Trends
JMFARC's turnover was ₹204.49 crore in 2024-25 and ₹358.37 crore in 2023-24. The rights issue is intended to support JMFARC's working capital requirements, finance its growth plans, and serve general corporate purposes.
Transaction Compliance
The acquisition was conducted on a cash consideration basis. According to the company, the transaction is not considered a related party transaction under SEBI Listing Regulations because shares issued on a rights basis are uniformly offered to all shareholders in proportion to their existing shareholding.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
