JM Financial plunges despite raising Rs 770 crore through QIP

JM Financial on Monday announced the bourses of having raised Rs 770 crore through qualified institutional placement (QIP). The company has issued and allotted Rs 11 crore equity shares with a face value of Re 1 each. The issue price for qualified institutional buyers was Rs 70 each, amounting to Rs 770 crore. The issue was subscribed by both domestic as well as the global buyers.

The funds will add to the existing cash and cash equivalents position of Rs 3,412 crore as on March 31, 2020 thereby, strengthening the liquidity position of the company amidst the uncertainties caused due to COVID-19. The capital will also provide an opportunity to tap into future growth opportunities at the right time.

JM Financial is a financial service group which provides various financial services. The primary business includes investment banking, wealth management and securities business. It also includes wholesale and retail mortgage lending, asset reconstruction business and managing mutual funds.

At the time of market closing, JM Financial Ltd was trading at Rs 73.05. Its 52-week high is Rs 126.00 while, its 52-week low is Rs 55.50. The stock declined by 1.95 per cent in today’s session despite raising Rs 770 crore through QIP.