JM Financial seeks shareholders' nod to raise up to Rs 650 cr

Financial services provider JM Financial today said it has sought shareholders' approval to raise up to Rs 650 crore by various means.
The money can be raised through sources including equity, bonds, foreign sources by way of a QIP or preferential issue or even a public issue.
Company's two wholly owned subsidiaries -- JM Financial Institutional Securities Ltd and JM Financial Investment Managers -- are proposed to be merged with it through a scheme of amalgamation.
After completing the restructuring process, JM Financial would cease to be core investment company and become a Sebi registered merchant banker, subject to necessary regulations and approvals.

"The company would, as an operating cum holding company, post the amalgamation, need to support any such long term capital requirements or financial needs of its operating subsidiaries as and when needed," JM Financial said in a regulatory filing.
The company said it has been exploring various avenues for raising funds for this purpose.

The funds can be raised by way of issue of equity share or by way of issue of any instrument, global depository receipts, American Depository Receipts, or warrants or non- convertible debentures for an amount aggregating up to Rs 650 crore.
"The board of directors, as its meeting held on December 18, 2017, has accorded its approval for raising of funds by the company through issue of securities," it added.

Stock of the company closed 0.48 per cent up at Rs 157.60 on BSE.