InvestorQ : Why is JM Financial considering a QIP to strengthen its balance sheet at this point of time?
Dawn Cherian made post

Why is JM Financial considering a QIP to strengthen its balance sheet at this point of time?

Answer
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Dilmini Mercia answered.
4 months ago


JM Financial is evaluating a qualified institutional placement (QIP). The idea is to raise around $100 million or close to Rs.750 crore to strengthen their balance sheet during the current period of uncertainty in the post COVID-19 scenario. The group has stated that it does not need cash now but wants to create a war chest for opportunities. Apparently, JM wants to ensure that it has enough capital to handle any loan related stress in its portfolio. The idea is to time the capital raising in such a way that they have a war chest ready to cover all their liabilities, interest and vendor payments. The fund requirements will be moer in its two NBFC activities viz. credit solutions and real estate funding.