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JM Financial Credit Solutions NCD Review

JM Financial Products NCD Review

JM Financial Credit Solution is one of the most prominent and leading financial service groups, known as non-deposit taking and non-banking financial company. The company was incorporated in the year 1980, basically Mumbai based company. The company is well-established for their diversification strategies in business, such as Investment Banking, Equity, Debt, Commodity Sales and Trading, Wealth Management, Portfolio Management Services, Asset Management, Alternative Asset Management, Financing and Lending, Housing Finance and Distressed Asset Management. Though it is a Mumbai based company, their clients are located in Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata. Before state the company’s NCD review, it is crucial to place the NCDs’ issue details with the financial statement. In order to know JM Financial Credit Solutions NCD Review, go through this following analysis.

About JM Financial Credit Solutions-NCD Issue Details

  • Issue open on- May 28, 2018
  • The issue close on- Jun 20, 2018
  • Issue Type: Fixed Price Issue NCD
  • Face value: Rs 1000 per NCD
  • Issue size: NCD’s of Rs. 1000
  • Issue size: Rs. 2,000.00 Crore
  • Issue price: Rs 1000 per NCD
  • Market lot: 10 NCD
  • Listing At: BSE
  • Minimum order quantity: 10 NCD
  • DRHP: Click here

Purpose of Issuing NCD

It is important to discuss why the company has taken such decision. Therefore, the purpose of issuing NCD is needed in case of NCD analysis.

  • Non-Convertible Debenture is basically issued by a company to raise its funds or capital.
  • It also enhances the company’s brand name, corporate image.
  • It provides liquidity to its debenture holders. NCD provide higher interest rates than CD or convertible debenture holder.
  • By issuing NCD, a company can expand their business by the extra funds, collected from the public.

About the Company

In order to analyze the review of a company’s NCD, the company’s background, history also carry the same importance.

  • Real estate developers get secured and unsecured lending from JM Financial. The product portfolio of JM Financial includes loans against property, loans against share, project finance, early-stage project loans, loans against lands etc.
  • The primary base of the group consists of fund-based activities, investment banking and securities business covering, alternative asset management business, asset management business which involves the mutual fund business.
  • On 2018, its loan book stood at 73,388.8million ass compared to 56,581.5 million as of 2017.
  • Their values include client focus, integrity, innovation, partnership, teamwork, implementation, performance.

Management Group

  • Managing Director: Mr Vishal Kampani
  • Chairman: Mr Nimesh Kampani
  •  Non-Executive & Independent Director: Mr E.A. Kshirsagar

Financial Information

JM Financial Credit Solutions NCD Review

JM Financial Credit Solutions NCD Review:

DRHD or draft red herring prospectus shows the required ratios, the percentage of financial statement along with the company’s financial and non-financial background. A standalone profit and loss chart of the company is attached above, shows decreasing profit amount from 2016 to 2017. The DRHP also tells us that in the last FY, the return on net worth (RoNW) stands at 21.76. Overall, JM Financial Credit Solutions NCD Review is NEUTRAL. Investors can invest but at their own risk. So, the review has much significance.

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