In a significant restructuring move, JM Financial is set to bolster its ownership of JM Financial Credit Solutions (JMFCS) by acquiring the 49% stake held by INH Mauritius, an investment fund controlled by veteran dealmaker Nimesh Kampani. This deal, valued at approximately Rs 3,000 crore, will see JM Financial’s ownership in JMFCS, a leading non-banking financial company (NBFC) specializing in real estate financing, rise to a commanding 96%. The transaction also paves the way for the exit of Vikram Pandit, the former CEO of Citigroup and current chairman of JMFCS.
This move by JM Financial signifies a strategic consolidation within its financial services empire. JMFCS has been facing some challenges due to under-recoveries in real estate financing, but JM Financial appears confident in the long-term growth potential of the company. The acquisition will not only strengthen JM Financial’s position in the NBFC sector but also unlock potential synergies between the two entities. Analysts are watching closely to see how JM Financial integrates JMFCS and steers it forward, particularly considering the recent regulatory restrictions placed on JM Financial itself.
