Wednesday, May 1, 2019

JM Financial Products Limited NCD

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JM Financial Products Ltd is a NBFC registered with the Reserve Bank of India and operates as the flagship company under the “JM Financial” brand. The company was incorporated on July 10, 1984 and has broadened its services from lease syndication and vehicle leasing to offering financial solutions through lending, syndication, participation in lending for securities issuance and distribution.

The company is focused on offering a broad suite of secured and unsecured loan products which are customized to suit the needs of the corporates, SMEs and individuals. JMFPL broadly operates under four verticals - fixed income division (structured financing), fixed income division (real estate financing), capital market financing and SME financing.

Gross NPAs were 0.4%,1.4%,0.6%,0.1%,0.3% and 0.3% of its gross loan book as of March 31, 2014, 2015, 2016, 2017, 2018 and December 31, 2018, respectively, while Net NPAs were 0.2%, 1.1%, 0.4%, 0.0%, 0.2% and 0.2% of its net advances as of such dates.

The company is offering secured redeemable NCDs with a base issue of Rs. 200 Crores with an option to retain oversubscription up to Rs. 800 Crores aggregating upto Tranche I Issue Size of Rs. 1,000 Crores.

The issue opens on April 22, 2019 and closes on May 21, 2019. The company is offering an interest rate or a coupon of 10.50% per annum.

The face value of the NCD is Rs. 1000 and minimum application amount is Rs. 10000 or 10 NCDs and in multiple of Rs. 1000 or 1 NCD thereafter. The issue shall get listed on BSE. DMAT account is mandatory for trading.

ICRA has given a rating of AA and CRISIL has given a rating of AA/Stable to the issue. Karvy Fintech Private Limited is the registrar and A. K. Financial and JM Financial and Trust Investment Advisors are the lead manager of the issue.

Interest rates have gone down so some investors might get tempted for such company fixed deposits. But investors should understand the inherent risks of company fixed deposits. Investors have burnt their money with Jaypee, Unitech etc. So, tread with caution if you want to invest in them. Incase, you want to look at some banks offering higher interest rates than others, checkout: https://www.myfamilyinvestment.com/2012/04/latest-resident-nro-bank-fixed-deposit.html


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