INH Mauritius to sell 49% stake in JMFCS to JM Financial for Rs 30 bn
ECONOMY & POLICY

INH Mauritius to sell 49% stake in JMFCS to JM Financial for Rs 30 bn

Former Citigroup CEO Vikram Pandit is set to exit the real estate financing business established by veteran dealmaker Nimesh Kampani. INH Mauritius, an investment fund managed by Pandit, will sell its 49% stake in JM Financial Credit Solutions (JMFCS) to Kampani's JM Financial in a deal valued at approximately Rs 30 billion.

Following the sale, Pandit will step down as chairman of the mid-tier NBFC. The transaction will increase JM Financial's stake in JMFCS from 47% to 96%, with the remaining 4% held by Moraine Master Fund and Aparna Aiyar, wife of Pandit's business partner Hariharan Aiyar. Hariharan will also step down from the JMFCS board following the shareholding change.

JM Financial, which has faced regulatory restrictions from managing debt issues and offering loans against shares due to governance lapses, will acquire 43% from INH Mauritius for Rs 12.82 billion in the first phase of the transaction. This deal will be financed through JM Financial's internal accruals, which amount to over Rs 40 billion.

Sources indicate that INH is exiting JMFCS as the fund's lifespan is coming to an end. INH Mauritius initially invested in JMFCS in fiscal 2015 and subsequently acquired more shares in 2017 and 2018, investing a total of Rs 9.5 billion. This marked Pandit's first investment in India's financial services sector. He also holds a 1.2% stake in the listed JM Financial.

The Rs 30 billion deal valuation is lower than JMFCS's net worth of Rs 42 billion, attributed to under-recoveries in real estate financing not yet reflected in the books, stemming from stress on developers.

Additionally, JMFCS will acquire a 72% stake in an asset reconstruction company from JM Financial for Rs 8.56 billion, increasing its stake in JMFARC from 10% to 82%.

(Source: ET& TNN)

Former Citigroup CEO Vikram Pandit is set to exit the real estate financing business established by veteran dealmaker Nimesh Kampani. INH Mauritius, an investment fund managed by Pandit, will sell its 49% stake in JM Financial Credit Solutions (JMFCS) to Kampani's JM Financial in a deal valued at approximately Rs 30 billion. Following the sale, Pandit will step down as chairman of the mid-tier NBFC. The transaction will increase JM Financial's stake in JMFCS from 47% to 96%, with the remaining 4% held by Moraine Master Fund and Aparna Aiyar, wife of Pandit's business partner Hariharan Aiyar. Hariharan will also step down from the JMFCS board following the shareholding change. JM Financial, which has faced regulatory restrictions from managing debt issues and offering loans against shares due to governance lapses, will acquire 43% from INH Mauritius for Rs 12.82 billion in the first phase of the transaction. This deal will be financed through JM Financial's internal accruals, which amount to over Rs 40 billion. Sources indicate that INH is exiting JMFCS as the fund's lifespan is coming to an end. INH Mauritius initially invested in JMFCS in fiscal 2015 and subsequently acquired more shares in 2017 and 2018, investing a total of Rs 9.5 billion. This marked Pandit's first investment in India's financial services sector. He also holds a 1.2% stake in the listed JM Financial. The Rs 30 billion deal valuation is lower than JMFCS's net worth of Rs 42 billion, attributed to under-recoveries in real estate financing not yet reflected in the books, stemming from stress on developers. Additionally, JMFCS will acquire a 72% stake in an asset reconstruction company from JM Financial for Rs 8.56 billion, increasing its stake in JMFARC from 10% to 82%. (Source: ET& TNN)

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?