Date: September 28, 2026
Subsidiary / Associate Update
JM Financial Limited received an intimation from its wholly owned subsidiary, JM Financial Credit Solutions Limited (JMFCSL), regarding a rights issue by JM Financial Asset Reconstruction Company Limited (JMFARC), which is a subsidiary of JMFCSL and a step-down subsidiary of JM Financial Limited.
JMFARC allotted 16,25,85,928 equity shares of face value ₹10 each for an aggregate amount of ₹162.59 crore on a rights basis to JMFCSL. The allotment was completed on September 28, 2026.
Post this investment, JMFCSL's shareholding in JMFARC has increased from 81.77% to 84.87%.
The objects of the rights issue are to meet JMFARC's working capital requirements, finance its growth plans, and for general corporate purposes.
Target Entity Background
JMFARC is an asset reconstruction company registered with the Reserve Bank of India under the SARFAESI Act, 2002. It is engaged in the business of acquiring stressed assets from banks/financial institutions and implementing resolution strategies.
Key financial metrics:
- Assets Under Management (AUM) as of March 31, 2026: ₹11,853 crore
- Turnover for FY 2025-26: ₹223.95 crore
- Turnover for FY 2024-25: ₹204.49 crore
- Turnover for FY 2023-24: ₹358.37 crore
Date of Incorporation: September 19, 2007
Geographic Presence: India