Started in 1980, 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. The company is 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. JMFCSL is coming with its maiden debt offer by way of Tranche I of secured, rated, listed redeemable non-convertible debentures having face value of Rs. 1000 each to mobilize Rs. 300 crore. It has a green shoe option to retain oversubscription upto Rs. 450 crore thus making the total issue size of Rs. 750 crore. This size is within the shelf limit of Rs. 2000 crore. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs. 1000) thereon, thereafter. Issue opens for subscription on 28.05.18 and will close on or before 20.06.18. Post allotment, these debentures will be listed on BSE. Issue is available for allotment only under demat mode. Funds mobilized through this offer will be used for business activities/repayment-prepayment of existing borrowings (75%) and general corpus fund (25%). Issue Structure is as under: (with details of tenure, coupon rates and effective yields)In Option 1, interest will be paid on an annual basis at a rate of 9.25%; and the tenor is 38 months. The Effective Yield (per annum) is 9.26%.In Option II, interest will be paid on a cumulative basis and the tenor is 38 months. The redemption amount per NCD is Rs. 1,323.39.In Option III, interest will be paid on anannual basis at a rate of 9.50% and the tenor is 60 months. The Effective Yield (per annum) is 9.49%.In Option IV,interest will be paid on a monthly basis at a rate of 9.11% and the tenor is 60 months. The Effective Yield (per annum) is 9.49%.In Option V, interest will be paid on an annual basis at a rate of 9.75% and the tenor is 120 months. The Effective Yield (per annum) is 9.74%.In Option VI, interestwill be paid on a monthly basis at a rate of 9.34% and the tenor is 120 months. The Effective Yield (per annum) is 9.74%.[Category IV Investors (Retail Individual Investors) are defined as Resident Indian individuals and HUFs through the Karta applying for an amount aggregating for an amount up to and including Rs. 10 lakh, across all Series of NCDs. Category III Investors (High Net-worth Individuals or HNIs) Investors are Resident Indian individuals and HUFs through the Karta applying for an amount above Rs. 10 lakh, across all Series of NCDs].Company will give interest @8% on allotment money and @5% on refund amount. This issue is rated ICRA AA/Stable by ICRA and IND AA/Stable by India Rating. These ratings indicate high degree of safety regarding timely servicing of financial obligations.
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