The first tranche is expected to raise Rs 100 crore (base issue), with the option of retaining oversubscription of up to Rs 400 crore, aggregating upto Rs 500 crore. This is within the shelf limit of Rs 1,500 crore.

The Tranche I issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 months. Series I carries floating interest rate based on 3-month T-Bill Rate published by the Financial Benchmarks India ('FBIL') plus 3.15% spread. The coupon for Series I NCDs will depend on the movement of the T-bill rate.

In addition, Series II, III and IV comes with fixed interest rate option in the tenor of 60 months (Annual), 60 Months (Monthly) and 100 months (Annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate).

Minimum application size is Rs 10,000 (10 NCDs) across all series collectively. Put and call option is not applicable.

With respect to Series where interest is to be paid on a monthly basis, relevant interest will be calculated from the first day till the last date of every month during the tenure of such NCDs and paid on the first day of every subsequent month.

For the first interest payment for NCDs where interest is to be paid on a monthly basis, interest from the deemed date of allotment till the last day of the subsequent month will be clubbed and paid on the first day of the month next to that subsequent month. The last interest payment will be made at the time of redemption of the NCDs.

The funds raised through this Tranche I issue will be used for the purpose of onward lending, financing, and for repayment or prepayment of interest and principal of the borrowings of the company (at least 75%) and for general corporate purposes (up to 25%).

The issue opened on 23 September 2021 and it will close on 14 October 2021, with an option of early closure. These NCDs have been rated AA/Stable by ICRA and CRISIL. The NCDs will be listed on the stock exchanges.

Shares of JM Financial were up 0.49% at Rs 92.05. The stock hit a high of Rs 93 and a low of Rs 90.65 so far.

The board of JM Financial, at its meeting held on 22 September 2021, approved appointment of Vishal Kampani as the non-executive vice chairman of the company with effect from 1 October 2021. The five year term of Vishal Kampani as the managing director of the company is coming to an end on 30 September 2021.

Vishal Kampani is the son of Nimesh Kampani, who is the non-executive chairman of the company.

Atul Mehra and Adi Patel have been appointed as joint managing directors of the firm with effect from 1 October 2021, for a period of up to 3 years.