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JM Financial Product Ltd IPO - Should you bet the ranch?



Sept 21, 2021

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JM Financial Product Ltd IPO - Should you bet the ranch?

“Price is what you pay ... Value is what you get ...!”

Ride the wave of capital preservation. Gather your friends and family. Call if you have to, but don’t miss out the bidding of the IPO bond. JM Financial Product Ltd is all set to open the gates for investors for IPO bidding on the September 23rd this year.
JM Financial Products Limited, a systematically Important Non-Deposit Taking NBFC, is focused on offering a broad suite of loan products which are customised to suit the needs of the corporates, SMEs and individuals. Business Verticals: Capital Market Financing, Retail Mortgage Financing, Structured Financing, Financial Institution Financing, Real Estate Financing.
The JM Financial IPO has been rated AA by independent credit rating agency and provides interest upto 8.30 % and upto tenure of 100 months. All you need to do is set a reminder on BondsIndia website and place your bid as we send you a reminder when it goes live.

About the Company (company stats, standings, etc.)

Issuer JM Financial Products Limited
Type of instrument Secured, Listed, Redeemable, Non-Convertible Debenture
Listing To be listed on BSE
Issue Size Base Issue size of ₹ 100 Crore with an option to retain oversubscription up to ₹ 400 Crore aggregating up to ₹ 500 crore being the Issue size.
Issue Price Rs 1000 per NCD
Minimum Investment Rs. 10,000
Issue Opening Date September 23, 2021
Issue Closing Date October 14, 2021
Mode of Application Dematerialised mode only

Issue Structure

Issue Structure

JM Financial Products’ Financial Performance

JM Financial Products’ Financial Performance

Key Strengths and Credit Risks

  • Healthy capitalisation

    The overall wholesale segment is facing challenges on account of funding constraint and lack of demand which makes the segment vulnerable to slippages in asset quality. Since the company maintains healthy capitalisation, it inherently provides cushion against the asset-side risk. Capitalisation is supported in the form of fresh equity as well as healthy accruals to net worth.
  • Established market position across its businesses

    The group has developed a strong franchise in key operating segments such as investment banking, wealth management, and securities-based lending. This is aided by the track record and reputation of its experienced management and healthy client relationship. Furthermore, management has been conservative in its risk philosophy. The group has strong network of borrowers with whom they have long relationship and has never faced any asset quality issues. Over the years the company has strengthened its risk department
  • Diversified business model and comfortable earnings profile

    The group`s earnings remain comfortable, with total revenue of Rs 2,386 crore and a profit of Rs 413 crore for first nine months of fiscal 2021. The group benefits from greater diversification of the business profile over the past few years and this has given stability to its earnings profile. The group has grown its investment banking, wealth management and securities business and mortgage lending business and it constituted around 48% and 37% of total revenue, respectively, for the quarter ended December 31, 2020.

Credit Risks

  • Asset quality in the wholesale lending business remains inherently vulnerable; albeit risk management processes are comfortable

    At a sectoral level, what has supported the asset quality metrics of wholesale non-banks in the past has been the ability of the entity to get timely repayments/exits via refinancing or event-linked fund inflows. However, the current challenging funding environment has significantly increased refinancing risks especially for real estate players
  • Potential funding challenges for wholesale-oriented non-banks

    JM Financial group has managed to raise long term funds aggregating over Rs 3,700 crores in FY20 and over Rs 1762 Crores from April till December 2020 for FY21. The funds raised has been through diversified sources including Commercial papers, Non-Convertible Debentures, Inter Corporate Deposit and Bank loan with improving cost of borrowings. During this period the company has also managed to diversify its investor base by raising money through retail investors, insurance companies and mutual funds

Why choose Bonds India?

Bonds India is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else. piramal ncd, piramal ncd review, piramal capital ncd, piramal capital ncd 2021, piramal capital and housing finance ncd, piramal capital and housing finance ipo

Bonds India ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for India Infoline IPO on BondsIndia’s website.

Place you bid in three simple steps

Key in Basic Details > Choose the IPO Series > Place the bid

Application process on Bonds India platform is simple and seamless?

Application process on Bonds India platform is simple and seamless.
  • Click on the details of JM Financial NCD IPO

  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details.

  • Then, confirm the quantity and price and select payment method.

  • That’s all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with Bonds India.
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