Financial services firm JM Financial has launched a qualified institutional placement, or QIP, with an indicative issue size of $101.8 million, or up to Rs 770 crore, sources in the know told Moneycontrol.
The QIP has been launched at an indicative price of Rs 70 per share, which represents a 1.41 percent discount to the last closing price on June 9, according to one of the persons cited above. Another person confirmed the QIP details.
Both individuals spoke to Moneycontrol on the condition of anonymity.
Moneycontrol was the first to report JM Financial’s fund raising plans via a QIP on June 6 and had also reported earlier that a launch was likely on June 9.
ICICI Securities and IDFC Securities are merchant bankers on the deal. Law firm Cyril Amarchand Mangaldas advised JM Financial while Khaitan & Co advised merchant bankers, according to exchange filings by the company.
A QIP is a capital raising tool wherein a listed company can issue equity shares, fully and partly convertible debentures, or any security (other than warrants) that is convertible to equity shares to a select group of investors or qualified institutional buyers.
QIBs include mutual funds, domestic financial institutions such as banks and insurance companies, venture capital funds, and foreign institutional investors.
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