Mumbai, Feb 2 (PTI) JM Financial has mopped up Rs 650 -crore through a qualified institutional placement to global and domestic investors, which was oversubscribed by over three times, merahant bankers said today.
The issue, launched on Jan 30 and closed today, was priced at Rs 162 a share, which has a face value of Re 1, and thus commanding a premium of Rs 161 a share, an investment banker said, adding the floor price was set at Rs 161.44.
However, the JM Financial scrip tanked 6.3 per cent to Rs 157.70 on the BSE, whose benchmark Sensex recorded the worst fall in 30 months with a 2.34 per cent plunge.
American investors accounted for the bulk of subscription, an investment banker said, adding there was strong demand from across the regions and categories.
The company had in an exchange filing said it would use the capital to strengthen the balance sheet of its lending business, which has been a flagship business for the diversified group.
In the December quarter its lending book stood at Rs 7,043 crore, of which corporate credit and structured financing stood at Rs 2,766 crore, capital market lending at Rs 2,380 crore and the real estate lending at Rs1,897 crore.
The issue was managed by the Swiss brokerage major Credit Suisse and the domestic brokerage IDFC.
Earlier this month, JM had reported a 42 per cent rise in net income at Rs 168.10 crore for the December quarter, on an income of Rs 837.73 crore that grew 41 per cent.
Meanwhile, reacting to the Budget, JM Financial Group managing director Vishal Kampani said "the Budget has laid the foundation for the new India."
He specifically noted the initiatives for enhancing rural income and farmers cash-flows through improved pricing and procurement, and the plan to provide for largest health insurance to 100 million people. PTI BEN SSM BEN BEN