JM Financial Credit Solutions Limited NCD
JM Financial Credit Solutions Limited is a Systemically Important Non – Deposit-taking Non- Banking Financial Company (“NBFC ND – SI”) forming part of the JM Financial group. They are a wholesale finance NBFC and provide integrated financial solutions to real estate developers with a focus on residential project financing such as funding real estate developers at various stages in the life cycle of a real estate project. They commenced lending to real estate developers in 2014 and their clients are located in Mumbai, Pune, Bengaluru, Chennai, Hyderabad, NCR, and Kolkata. For Fiscal 2018, their loan book stood at ₹ 73,388.8 million as compared to ₹ 56,581.5 million as of Fiscal 2017.
They provide secured and unsecured lending to the real estate developers. Their product portfolio consists of:
(i) Project finance: This includes offering loans to developers for the construction of residential or commercial projects.
(ii) Loans against property: This includes loans against the residential or commercial properties with occupation certificate.
(iii) Loans against shares: This includes loans to investors against the listed or unlisted shares of corporates
(iv) The project at early stage loans: This is primarily undertaken against projects which are expected to be launched soon
(v) Loans against land: This funding is primarily undertaken for land acquisition or against land parcels which are not expected to be launched in the near future.
JM Financial Credit Solutions Limited – Draft Shelf Prospectus
Objective of NCD JM Financial Credit Solutions Limited NCD:
Objective of JM Financial Credit Solutions Limited NCD are:
1. For the purpose of onward lending, financing, and for repayment /prepayment of interest and the principal of existing borrowings of the Company
2. General Corporate Purposes
JM Financial Credit Solutions Limited NCD Details:
| Open Date: | Nov 20 2018 |
| Close Date: | Dec 20 2018 |
| Issue Type: | Fixed Price Issue NCD |
| Issue Size: | ₹ 1250 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 1 NCD |
| Minimum Order Quantity: | 10 NCD |
| Listing At: | BSE |
Promoters:
Promoters of JM Financial Credit Solutions Limited NCD Company are:
The promoter of the company is JM Financial Limited.
Credit Rating:
JM Financial Credit Solutions Limited NCD
This issue is rated IND AA/Stable by India Ratings. The rating of the NCDs by ICRA and India Ratings indicates a high degree of safety regarding timely servicing of financial obligations.
Interest Rates:
NCDs have a tenure of 42 months, 60 months and 120 months. It offers coupon rates ranging from 10% to 10.10% , 10.25% based on the tenure and the interest payment options.
Post Tax returns:
(i) Sold after Maturity
The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individuals.
(ii) Sold Before Maturity
If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold with in a period of 12 months from the date of allotment, short term capital gains / loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains / loss (LTCG).
Recommendation:
JM Financial Credit Solutions Limited NCD Rating by InvestorZone team => 3/10 (Avoid)
1-5: Fair
5-7: Good
7-10: Excellent
Live Subscriptions JM Financial Credit Solutions
Lead Manager of JM Financial Credit Solutions Limited NCD:
- A. K. Capital Services Limited
- Edelweiss Capital Limited
- JM Financial Consultants Private Limited
- Trust Investment Advisors Private Limited
Registrar of JM Financial Credit Solutions Limited NCD:
- Karvy Computershare Private Limited
Discussion on JM Financial Credit Solutions Limited NCD:
2 Comments
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The JM Financial NCD is rated AA/Stable by leading credit rating agencies CRISIL and ICRA. Instruments with this rating are considered to have a high degree of safety with regards to timely servicing of financial obligations. Such instruments carry a comparatively lower credit risk and lesser risk exposure to market volatilities. I strongly recommend to buy and not miss this opportunity.
Recent ILFS scandal has made these NCDs dangerous.