JM Financial has bought the remaining 2.98% stake in JM Financial Credit Solutions Ltd (JMFCSL) from Moraine Master Fund LP. With this, JMFCSL becomes a wholly-owned subsidiary of JM Financial. The deal was worth about ₹88.97 crore and was finalized on July 1. This move is expected to boost JM Financial’s overall profits and help allocate capital more efficiently within the group.
The purchase involved 84,343 shares, which make up 2.98% of JMFCSL’s total shares. The agreement was signed on June 27, and the completion took place a few days later. The company paid the sum in cash, as reported in a regulatory filing.
After the deal, JM Financial’s ownership in JMFCSL rose from 97.02% to 100%. This gives JM Financial full control of the non-banking financial company.
The company said that owning the entire stake should lead to higher consolidated profits and better control over how capital is used and profits are shared within the group.
JMFCSL was set up in 1980 and is registered with the Reserve Bank of India as an important non-deposit NBFC. It is classified as a Middle Layer NBFC under RBI’s Scale Based Regulations.