High Yield | AA- Rated | Minimum Investment: 10k Only
JM Financial Products Limited is offering secured and AA-rated NCDs. The IPO has been live since 23 September 2021 and it closes on 14 October 2021. The NCDs are being issued in 4 series. The NCDs are offering coupons up to 8.3% which is 2-3% higher than bank FDs. They come with different tenures such as 39 months, 60 months, and 100 months.
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| Issuer | JM Financial Products Limited |
| Type of instrument | Secured, Redeemable, NCDs |
| Listing | Will be listed on BSE |
| Credit Rating | ‘AA ‘ by ICRA and CRISIL |
| Issue Size (in Rs.) | 500 Crores |
| Issue Price (in Rs. | Rs. 1000 per NCD |
| Minimum investment (in Rs.) | 10,000 |
| Issue opening date | Sep 23, 2021 |
| Issue closing date | Oct 14, 2021 |
| Number of the series | 4 |
| Allotment | First come first served |
| Registrar of the issue | KFin Technologies Private Limited |
JM Financial Products Limited NCD IPO: Coupon rates for each of the series
| Series | Payment Frequency | Tenure | Coupon |
| I | Annual | 39 Months | *91-day T-bill + 315BPS |
| II | Annual | 60 Months | 8.20% |
| IV | Monthly | 60 Months | 7.91% |
| V | Annual | 100 Months | 8.30% |
*The Treasury Bill rates are ranging between 3.2% to 3.5% for 3 months. In near future coupon can be 6.35% (3.2% + 315 bps) to 6.65% (3.5% + 315 bps).
Allocation Ratio
The allocation ratio of IBHFL NCD IPO is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI. Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio forJM Financial Products Limited.
Issue Analysis
Purpose of issuance
- At least 75% of the capital can be utilized for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of the borrowings.
- Maximum of up to 25% for business operations
Pros
- The NCDs are being issued in 4 series. The NCDs are offering coupons up to 8.3% which is 2-3% higher than bank FDs.
- These NCDs are secure.
- The NCDs are AA-rated with a stable outlook by ICRA and CRISIL. AA-rated instruments are considered to be of investment grade and a stable outlook indicates strong financial stability of the company.
Cons
- Covid-19 pandemics have impacted the business. The major source of the company’s revenue has been real estate. And real estate industry is down because of pandemics. Because of uncertain future credit ratings are not completely reliable.
- These NCDs are secured and AA-rated but they are offering average returns .
About JM Financial Products Limited
JM Financial Products Ltd. (“JMFPL”) is the Non-Banking Finance Company (NBFC) of the JM Financial Group. It is a non-deposit accepting non-banking finance company registered with the Reserve Bank of India. The company provides home loans to retail customers with a focus on the affordable housing segment through subsidiary JMFHL (registered with National Housing Bank) Loan book of the company stands at Rs 5503 Cr as of June 30, 2019.
Financial Performance
Strengths
- Well-positioned in the industry
- Diversified product portfolio
- Strong credit profile
- Agile in adopting advanced technology
Investment Process for JM Financial Products Limited
IPOs are facilitated by entities called Lead Managers. Generally, these lead managers are brokerage firms. Investors need to apply for IPO through lead managers, and once the allotment is made, investors will receive the bond units in their Demat account.
You can invest in IPOs via GoldenPi in 3 easy steps.
If the investment amount is less than 10 lakhs
If the investment amount is less than 10 lakhs, retail investors can apply for an IPO online in three simple steps.
- Select the product- Visit GoldenPi.Com and go to the collection page. Visit the IPO section and choose the issuing company. The product page provides information such as a coupon, yield, maturity, and payment frequency. The product page also displays credit rating and issuer details that help investors to make an appropriate decision.
- Decide Investment Amount – Decide the amount you want to invest. You need to select the series and the number of units you want to purchase. The calculator displays the total investment amount.
- Pay via UPI– Now provide UPI handle. You will receive a mandate in the UPI app. Go to the respective UPI app and make payment by approving the mandate.
If the investment amount is more than 10 Lakhs –
A.Fill up the form with the required information.
B.Take a photo of your form and share it with your Relationship Manager for bidding on exchange.
C.Courier the filled up IPO form to our office address as early as possible. The issue closes on the 6th of September, 2021. The earlier you send it, the better it is.
Our Address: IndiQube Orion, Ground Floor,
24th Main Road, Garden Layout, Sector 2,
HSR Layout, Bangalore, Pincode: 560102
To know how to invest in NCD-IPO online, read this blog.
IPO allotment
IPO will be allotted to you on a first-come, first-serve basis and credited to your Demat account.
Dos and Don’ts of Indiabulls NCD-IPO
- Every individual can submit 5 IPO applications.
- The Demat account must be active.
- After applying for an IPO, you can not change your contact details such as email id and cell number until allotment.
- If you are paying via UPI, then the UPI mandate must be accepted within 48 hours.
