JM Financial Home Loans (JMFHLL), a part of the JM Financial group is a housing finance company (HFC) registered with the National Housing Bank. It focuses on affordable housing finance and smaller ticket loan against property. As of December 2022, JMFHLL has expanded to 78 branches across the states of Maharashtra, Gujarat, Rajasthan, Tamil Nadu, Telangana, Karnataka, Andhra Pradesh, Chattisgarh and Madhya Pradesh with a loan book of Rs 1,181 crore and AUM of Rs 1,272 crore.

IndoStar Home Finance (IHFPL), registered with National Housing Bank, as a housing finance company and a wholly owned subsidiary of IndoStar Capital Finance, is a professionally managed organization which is engaged in providing affordable home finance across India. As of December 2022, IHFPL has expanded to 135 branches across 10 states with a loan book of Rs 1,242 crore and AUM of Rs 1,526 crore.

The two companies are engaged in preliminary discussions to explore potential strategic options including potential combination and listing of the retail mortgage portfolio of JM Financial and the home finance business of Indostar Home Finance, including other mortgage-backed business of Indostar.

"JM Financial Home Loans has a long-term strategic interest in the home loan and such mortgage-backed businesses and looks forward to scaling these businesses to the next phase of its growth,” JM Financial said in a statement.

It further informed that the discussions are currently at a preliminary stage and non-binding in nature and any transaction concerning JM Financial Home Loans and Indostar will be subject to satisfactory due diligence, negotiation of commercial terms, execution of definitive agreements and receipt of all relevant regulatory and other approvals.

JM Financial is an integrated and diversified financial services group. The Group's primary businesses include an investment bank, mortgage lending, alternative and distressed credit and asset management, wealth management and securities business.

The company had reported 12.29% fall in consolidated net profit to Rs 190.16 crore on a 1.90% decline in total income to Rs 946.13 crore in Q3 FY23 over Q3 FY22.

The scrip rose 0.02% to currently trade at Rs 60.92 on the BSE today.