JM Financial To Buy Over 17% In Mumbai-Based India Home Loan

New Delhi: JM Financial will buy an over 17 per cent stake in India Home Loan Ltd, by acquiring the full holding of one of the promoters and non-locked in shares of another. 

As per the share purchase agreement between the company and JM Financial, Anant Bhalotia will sell his entire shareholding of 8.77 per cent and Rishabh Siroya his 8.76 per cent of non locked-in shares.

The board has considered and recorded the intention of one of "the present promoters, Anant Bhalotia, to sell his entire shareholding in the company 996,890 equity shares of the company (8.77 per cent) to JM Financial Products Ltd (JM Financial) and one of the other promoters, Rishabh Siroya to sell his non locked in shares 996,490 equity shares (8.76 per cent) to JM Financial", India Home Loan said. 

However, the valuation of the deal could not be ascertained.

A total of 4,00,000 equity shares of Mr Siroya are locked in and not part of the sale transaction, it said in a regulatory filing.

After the sale of their respective stakes, Mr Bhalotia and Mr Siroya would no longer remain promoters of the company. Both have also tendered their resignations to the company board, effective from the completion of the sale. 

The sale will happen after approval from the National Housing Bank of India.

It will also allot 29,11,755 equity shares on a preferential basis including that to JM Financial (15,05,650 shares) at a value of Rs 11.94 crore.

Nimesh Kampani-led JM Financial is a financial services group offering investment banking, institutional equity sales, trading, research and broking, wealth management, asset management broking and NBFC services. 

India Home Loan Limited (IHLL) is a Housing Finance Company which offers retail home loan product for affordable housing segment.

Mumbai-headquartered IHLL offers home loans to customers and for construction of a dwelling unit on an owned plot.

Shares in JM Financial ended 2.57 per cent lower at Rs 79.60 apiece on the BSE, whose benchmark Sensex index finished up 0.52 per cent.