Vikram Pandit, GIC, promoters invest Rs 875 cr in JM’s real estate NBFC
Five years after investing into ace deal maker Nimesh Kampani’s non-banking finance company (NBFC) for real estate investing, former Citigroup CEO Vikram Pandit, Govt of Singapore Investment Corp (GIC), and promoters of JM Financial Services are putting in about Rs 875 crore in JM FInancial Credit Solution.
The fund infusion into the NBFC of the Mumbai-based investment banking firm comes when the sector in India is facing a perceived downturn.
As per the agreement, Pandit and GIC together will invest 50 percent of the fresh capital, while JM Financial (JMFL) will invest Rs 225 crore. The rest is the capital raised from university endowments such as University of California Endowment Fund and large foreign institutions, said one of the sources briefed about the transaction.
The fund-raise is at a post-money equity valuation of up to Rs 7,175 crore.
The transaction shall increase the net worth of JMFCSL by 50% and further strengthen the balance sheet of JMFCSL to meet its growth requirement, the Mumbai-based firm said in a statement.