During Monday’s trading session, the shares of an integrated and diversified financial services group surged 6.4 percent to hit a new 52-week high at Rs. 168.85 on BSE, after the company announced that RBI has lifted restrictions on its material subsidiary.
With a market cap of Rs. 15,249 crores, at 11:46 am., the shares of JM Financial Limited were trading in the green at Rs. 159.55, up by nearly 0.6 percent, compared to its previous closing price of Rs. 158.7.
According to the latest regulatory filings with the stock exchanges, the Reserve Bank of India (RBI) lifted the restrictions with immediate effect it had imposed on JM Financial Products Limited, a material subsidiary of JM Financial Limited.
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These restrictions, imposed by RBI on 5th March, involved financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO) of shares as well as against subscription to debentures.
This action was necessitated by certain serious deficiencies observed in the loans sanctioned by the company for IPO financing and NCD subscriptions. The RBI conducted a limited review of the company’s financial records based on information provided by the Securities and Exchange Board of India (SEBI).
The company experienced a marginal growth in its total income, showing a year-on-year increase of around 1 percent from Rs. 1,067 crores in Q1 FY24 to Rs. 1,077 crores in Q1 FY25.
JM Financial Limited (JMFL) plans to acquire up to a 48.96 percent stake from minority shareholders of JM Financial Credit Solutions (JMFCSL) and intends to sell up to a 71.8 percent stake in JM Financial Asset Reconstruction Company Limited (JMFARC) to JMFCSL, pending regulatory and other approvals.
