JM Financial gallops to 52-week high after tie-up with Vikram Pandit

Meanwhile, the BSE Sensex was down 50.26 points, or 0.25%, to 20,197.07

The stock advanced on high volume. On BSE, 1.01 crore shares were traded in the counter as against an average daily volume of 4.44 lakh shares in the past one quarter.

The stock had a 52-week high of Rs 27.50 in intraday trade today, 17 May 2013. The stock hit a low of Rs 24.80 so far during the day. The stock hit a 52-week low of Rs 11.50 on 4 June 2012.

The small-cap company outperformed the market over the past one month till 16 May 2013, surging 34.57% compared with the Sensex's 8.01% rise. The scrip had also outperformed the market in past one quarter, advancing 29.40% as against Sensex's 4% gain.

The company's equity capital is Rs 75.27 crore. Face value per share is Re 1.

Shares of JM Financial had gained 10.03% to settle at Rs 20.30 on 15 May 2013 after the company before market hours on that day said it has scheduled a board meeting on 16 May to consider the issuance of warrants to the investor(s) on a preferential basis. The stock had jumped 16.01% to settle at Rs 23.55 on 16 May 2013.

JM Financial's board of directors at a meeting held on Thursday, 16 May 2013, approved issue of 2.32 crore warrants equivalent to 3% stake in the post issue equity capital of the company at Rs 19.05 per warrant on preferential basis to various investors. Vikram Pandit will be issued 1.16 crore warrants. Hari Aiyar and Aparna Murthy Aiyar will be issued 58.23 lakh warrants each.

JM Financial's board also approved making an application for banking license by JM Financial group. JM Financial said that the company will nominate Vikram Pandit as the non-executive chairman of the proposed bank. Vikram Pandit and Hari Aiyar will have the right to purchase shares of the proposed bank upto the amount prescribed by RBI.

JM Financial also announced an expansion of the lending and financing businesses of the company by issuance of $100 million of capital to global funds raised and managed by a firm led by Vikram Pandit. JM Financial will nominate Vikram Pandit as the non-executive chairman of the NBFC.

JM Financial's board of directors also approved the formation of a distressed asset fund to be set up jointly by JM Financial and Vikram Pandit's firm with an initial target capitalization of $100 million.

JM Financial's consolidated net profit rose 53.8% to Rs 44.13 crore on 40.9% rise in total income to Rs 268.38 crore in Q3 December 2012 over Q3 December 2011.

JM Financial is an integrated financial services group, offering a wide range of services. The group has interests in investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, NBFC (non banking finance company) activities, private equity and asset reconstruction.

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