JM Financial hits 52-week high as former Citigroup chief acquires stake

The board approved issue of 11.65 million warrants former Citgroup chief Vikram Pandit and Hari Aiyar at a price of Rs 19.50 per share on preferential basis.

JM Financial has rallied 11% to Rs 26.10, extending its previous day’s 16% surge after its board approved issue of 11.65 million warrants to former Citgroup chief Vikram Pandit and Hari Aiyar  at a price of Rs 19.50 per share on preferential basis.

The stock opened at Rs 26.80 and hit a 52-week high of Rs 26.75 on NSE. A combined 16.38 million shares changed hands on the counter in opening deals on NSE and BSE.

“The financial services company will allot 23.29 million warrants equivalent to 3% of the emerging capital as on date to Vikram Pandit and Hari Aiyar,” JM Financial said in a statement.

Vikram Pandit and Hari Aiyar will pay $10 million (about Rs 55 crore) for the stake, besides investing $100 million (about Rs 550 crore) for expansion of the non-banking financial company’s (NBFC’s) lending business.

Meanwhile, the board has also approved filing of application for a banking licence with the Reserve Bank of India (RBI). The application deadline expires on July 1. Pandit would be nominated the non-executive chairman of the NBFC, as well as its proposed bank.