Mumbai: JM Financial Products Limited (JMFPL) is coming up with secured redeemable non-convertible debentures (NCDs) which aggregates to Rs 200 crore. The NCD issues also had an option to retain over-subscription up to Rs 800 crore for issuance of additional NCDs, aggregating up to a total of Rs 1000 crore. The NCD issue will open on April 22, 2019, and will close on or before May 21, 2019. The company has a shelf limit of Rs 2,000 crore.
These NCDs, bearing a fixed rate of interest, has tenures of 24 months, 36 months, and 60 months. The coupon rates shall be ranging from 9.90 per cent to 10.50 per cent p.a., payable monthly, annually or cumulative as per the choice of investors. The allotment will be on ‘First come – First Served’ basis.
The net proceeds of the issue will be utilised for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of borrowings of the Company (up to 75 per cent) and for general corpus fund (up to 25 per cent). The minimum application is to be made for 10 NCDs (i.e. Rs 10,000) and in multiple of 1 NCD (i.e. Rs 1,000) thereon, thereafter.
The NCDs to be issued have been rated ‘ICRA AA and CRISIL AA/Stable. The rating of NCDs indicates high degree of safety regarding timely servicing of financial obligations. The secured NCDs offered through the issue are proposed to be listed on the BSE. The issue is jointly managed by A K Capital Services Ltd., JM Financial Ltd. and Trust Investment Advisors Pvt. Ltd. while Karvy Fintech Pvt. Ltd. is the registrar to the issue.
JMFPL’s loan book has grown from Rs 2,897.2 crore as of March 31, 2014 to Rs 6,582.3 crore as of March 31, 2018. It recorded total revenue / income of Rs 529.2 crore, Rs 702.5 crore, Rs 559.5 crore, Rs 706.4 crore, Rs 907.9 crore and Rs 730.3 crore, in fiscal 2014, fiscal 2015, fiscal 2016, fiscal 2017, fiscal 2018 and in the nine months period ended December 31, 2018, respectively.
The company recorded profit after tax of Rs 134.8 crore, Rs 188.3 crore, Rs 167.4 crore, Rs 197.2 crore, Rs 212.9 crore and Rs 158.5 crore for the said periods.
The gross NPAs of JMFPL’s were Rs 11.1 crore, Rs 47.9 crore, Rs 20.3 crore, Rs 4.1 crore, Rs 16.8 crore and Rs 16.8 crore in fiscal 2014, fiscal 2015, fiscal 2016, fiscal 2017, fiscal 2018 and in the nine months ended December 31, 2018, respectively, while net NPAs were Rs 5.7 crore, Rs 39.0 crore, Rs 11.7 crore, Rs 0.0 crore, Rs 15.1 crore and Rs 15.1 crore in such periods.
