Millennium Post

Kampani co’s stock soars on news of Pandit role in bank

Shares of JM Financial shot up by nearly 17 per cent in morning trade on Friday, after the company said that former Citigroup chief Vikram Pandit would buy a stake in it.

Following the news, shares of JM Financial opened the day on a strong note and as trade progressed, it jumped 16.77 per cent to Rs 27.50 — its 52-week high on the Bombay Stock Exchange (BSE).

At the National Stock Exchange of India (NSE), the stock surged 17.62 per cent to a one-year high of Rs 27.70. The market capitalisation of the company moved up by Rs 259 crore to Rs 2,029 crore.

At close of trade, shares of JM Financial were up 13.38 per cent to Rs 26.70 on the Bombay Stock Exchange. On the National Stock Exchange of India, the scrip settled at Rs 26.55, up 12.74 per cent from its previous close.

In terms of volume, 128.52 lakh shares of the company changed hands on the Bombay Stock Exchange while over 4.46 crore were traded on National Stock Exchange of India.

In the stock market, the Bombay Stock Exchange's benchmark 30-share Sensitive Index (Sensex) closed at 20,286.12, up 38.79 points.

Beginning a new innings, former Citigroup chief Vikram Pandit will spearhead Nimesh Kampani-led  JM Financial's proposed banking venture and will also make a strategic investment in the financial services group.

Indian-origin Pandit will join hands once again with his business partner Hari Aiyar to buy a 3 per cent stake in JM Financial for Rs 45 crore.

Pandit, Aiyar and Aparna Murthy Aiyar would together buy 2.32 crore warrants at a price of Rs 19.50 per piece, aggregating Rs 45 crore. JM Financial will issue over 1.16 crore warrants worth about Rs 22.6 crore to Pandit alone.

JM Financial will nominate Pandit as the non-executive chairman of its proposed banking venture in which he and Hari Aiyar would have the right to purchase shares up to the amount prescribed by the Reserve Bank of India (RBI), the country’s central bank.
Next Story
Share it