Shares of JM Financial Ltd rose nearly 3% on Monday (March 18) after the company announced that its Board has approved a Business Transfer Agreement (BTA) with its subsidiary JM Financial Services Ltd (JMFSL) to transfer its Private Wealth Business.
Key Highlights of the Transaction
- The Private Wealth Business will be transferred to JMFSL via slump sale for ₹11.08 crore.
- Effective Date: April 1, 2025.
- The Private Wealth unit contributed ₹56.09 crore in revenue (6.84% of total revenue) and had a net worth of ₹33.78 crore (0.82% of total net worth) as of March 31, 2024.
- The final agreement is expected to be signed by May 15, 2025.
JM Financial aims to consolidate its wealth management business under one entity, enhancing operational efficiency, improving synergies, and strengthening its wealth management services. The Private Wealth Business will be integrated with JMFSL’s existing broking, margin funding, and financial product offerings.
The company clarified that this is a related-party transaction since JMFSL is a wholly-owned subsidiary. However, it will not impact JM Financial’s consolidated financials.
Stock Performance
- Current Price: ₹86.40
- Day’s High: ₹86.70
- Market Cap: ₹82.85 billion
- P/E Ratio: 21.60
- Dividend Yield: 2.31%
JM Financial expects this restructuring to enhance its market position in wealth management by bringing both Elite Wealth and Private Wealth units under a single leadership.
