 "Illustration by Binay Sinha")
JM Financial Services group is tweaking its strategy to grow distressed asset business. It will increasingly use alternate investment fund (AIF) to expand this business while putting less emphasis on asset reconstruction company (ARC) route.
The company does not want to have high leverage in ARC business due to delays it faced from the National Company Law Tribunal (NCLT) as well as other resolutions. The interest costs hurt a lot in terms of profitability. And from next year, it will incrementally grow this business through AIFs, and not grow it necessarily through ARC balance sheet, according to an analysts call transcript
