JM Financial Limited has announced that it will transfer its Private Wealth business to its wholly-owned subsidiary, JM Financial Services Limited (JMFSL), through a slump sale. The move, approved by the board on March 17, 2025, will become effective from April 1, 2025.
According to the company’s regulatory filing, the Private Wealth division contributed ₹56.09 crore in revenue, accounting for 6.84% of JM Financial’s total revenue in the last fiscal year. The net worth of this division stood at ₹33.78 crore, or 0.82% of the company’s total net worth as of March 31, 2024.
The total consideration for the transaction is set at ₹11.08 crore, equivalent to the book value of the Private Wealth business as of February 28, 2025. The final amount may change based on the book value as of March 31, 2025.
The company has stated that integrating the Private Wealth division with JMFSL’s existing operations will enhance service synergies and streamline business functions. The move aligns with JM Financial Group’s long-term strategy of consolidating its Elite Wealth and Private Wealth segments under a unified structure.
JM Financial clarified that, since JMFSL is a wholly-owned subsidiary, the transaction qualifies as a related party transaction but does not require separate approvals under SEBI regulations.
The company’s board meeting to finalize the agreement concluded at 3:40 PM on March 17, 2025. The Business Transfer Agreement is expected to be signed by May 15, 2025.
