JM Financial Home Loans Limited and Indostar Capital Finance Limited are engaged in preliminary discussions to explore potential strategic options, according a joint statement released on April 24.
The housing finance companies are considering options such as potential combination and listing of the retail mortgage portfolio of JM Financial and Indostar's home finance business which includes other mortgage-backed businesses of Indostar.
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JM Financial expressed a strategic long-term interest in the home loan and mortgage-backed business. The company also said that it looks forward to scaling these businesses to the "next phase of their growth".
The companies disclosed that the discussions between the two were at a preliminary stage and were non-binding in nature.
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Any transaction concerning JM Financial 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, the statement said.
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