[.]| Listing at BSE | Thu, Feb 13, 2020 - Mon, Mar 9, 2020
JM Financial Products Ltd. NCD issue is a public issue of secured, redeemable, non-convertible debenture , issued under a Shelf Prospectus of ₹2,000.00 Cr with a base issue size of ₹100.00 Cr and an option to retain oversubscription up to ₹[.] Cr, aggregating to a tranch issue size of ₹[.] Cr. The NCDs are offered at a face value ₹1000 each and an issue price of ₹1000 per NCD.
JM Financial Products Ltd. NCD issue opens on Feb 13, 2020 and closes on Mar 9, 2020. NCD are proposed to be listed on BSE.
The minimum lot size is 10 NCDs, requiring a minimum investment of ₹ 10,000 , while the market lot for trading is 1 NCD.
The issue offers interest rates ranging from per annum to per annum, depending on the series and tenure selected.
The NCD has been rated: .
A.K.Capital Services Ltd. is the Lead Manager to the issue, is the Debenture Trustee, and Kfin Technologies Ltd. is the Registrar to the Issue.
Investors are advised to refer to the [.] for detailed information on risk factors, financials, and the terms of the issue.
Open Date
Thu, Feb 13, 2020
Close Date
Mon, Mar 9, 2020
Issue Size (Overall)
[.]
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Annually | Cumulative | Annually | Cumulative | Monthly | Annually | Cumulative | Monthly | Annually | Monthly |
| Nature | Secured | |||||||||
| Tenor | 24 months | 24 months | 40 months | 40 months | 40 months | 60 months | 60 months | 60 months | 120 months | 120 months |
| Coupon Rate | 9.50% | NA | 9.70% | NA | 9.29% | 9.90% | NA | 9.48% | 10.00% | 9.57% |
| Amount on Maturity | Rs 1,000 | Rs 1,199.02 | Rs 1,000 | Rs 1,361.28 | Rs 1,000 | Rs 1,000 | Rs 1,603.20 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
JM Financial Limited is the promoter of the company.
Incorporated in 1984 under the brand name JM Financial, JM Financial Products Limited is a Non - Deposit Taking NBFC authorized by RBI. The company is engaged in providing financial services mainly in the area of vehicle leasing and lease syndication. The company offers a gamut of financial services through participation in securities lending, distribution, issuance, and syndication.
Products:
Based on customer needs, the company offers secured and unsecured loans. The company principally works in the area of four asset classes which are fixed income division (real estate financing), fixed income division (structured financing), SME financing and capital market financing.
1. FID (structured financing)
It comprises structured lending to companies in different sectors for secured lending, subordinated or mezzanine financing, promoter financing, property collateral, syndication and acquisition financing.
2. FID (real estate financing)
It includes loan against commercial property or residential property or project or land or shares.
3. SME Financing
In this segment, the loan is provided to small and medium enterprises for the project, institutional, and working capital purposes against education institutional and property lending.
4. Capital market financing
In capital market financing, loans are provided for ESOP financing, buy now sell later, arbitrage, margin trade financing, public offer financing, broker financing, and personal purposes.
The company also offers unsecured loan to customers if the creditworthiness of the customer is good and purpose is acceptable. It has also ventured into housing finance business and real estate broking business under the brand name of JMFHL and Dwello, respectively.
The competitive strengths of the company are:
1. Diversified product portfolio
2. Well-positioned in the industry with growing trends
3. Good track record
4. Firm lending book profile
5. Multiple funding sources
6. Strong credit profile
The following objects of the Issue and the amount proposed to be financed from the Net Proceeds:
1. At least 70% for the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of the Company
2. Maximum of up to 25% for General Corporate Purposes
[Dilip Davda] Based on AA/Stable ratings from ICRA and CRISIL, coupon rates offered by the company are lucrative. However, setback for first three quarters performance on Y-o-Y basis raises concern. Investors looking for safe returns may consider investment for long term. (Subscribe for long term). Read detail review...
JM Financial Products Ltd.
7th Floor, Cnergy,
Appasaheb Marathe Marg Prabhadevi,
Mumbai, Maharashtra 400 025, India
Mumbai, Maharashtra, 400025
NSE and BSE offer NSEgoBid and BSEDirect apps/websites through which retail investors can apply for NCDs up to Rs 5 lakhs. Not all brokers and banks provide the facility to apply for NCD online.
To apply for an NCD online, the investor should fill in the NCD bid details online and provide the details of the DP and bank accounts (ASBA/UPI) as requested. In the case of a UPI application, the investor needs to approve the UPI mandate to complete the application process.
Steps to invest in NCD IPO through GoldenPi
Retail investors can apply for an IPO online if the investment amount is less than or up to 10 lakhs.
Steps to apply for NCD IPO with Indiabonds:
You can buy or invest in NCD IPOs through the following intermediaries:
The investor can apply for the NCD IPO online through NCD intermediaries such as a registered stockbroker, provided the broker offers an online application for the NCD IPO. Not many brokers allow you to invest in an NCD IPO online. Currently, very few brokers, such as Nuvama Wealth, Angel One, and SBI Securities, offer the facility to apply for NCD IPOs electronically. You should check with your broker or intermediary to see if the online application facility for the NCD IPO is available through them.
Refer to the detailed guidelines on NSEgoBID and BSEDirect for information on the registration process and how to apply for NCDs through the exchange.
Important links :
Read more about NCD Application Process.
The minimum amount required for NCD investment is Rs. 10,000.
Generally, the minimum lot size of NCD is 10, and the face value is 1,000.
NCD allotment can be checked on the BSE website or with the Registrar once the allotment has been made.
Steps to check the NCD allotment status at the BSE:
Alternatively, the applicant can also check the allotment status on the respective website of the Registrar for the issue. The applicant will need their PAN details or the applicant's Aadhaar number to check the status.
Generally, all applicants receive full allotment due to the retention of the oversubscription option.
Read more information on NCD Subscription and NCD Allotment Process.
No, you cannot withdraw or redeem JM Financial Products Ltd. NCDs before maturity directly from the company. However, there are a couple of options available if you want to exit early:
If the NCDs are listed on stock exchanges (like BSE/NSE), you can:
Only possible if a "call option" exists.
Read more about NCD Subscription and Allotment Process
Bid Cancellation and Withdrawal Policy for NCD Applicants
Note:
The specific process and conditions for post-closure cancellation vary by issuer. Applicants should refer to the Offer Document for issuer-specific guidelines.
