Mumbai, May 16, 2013: JM Financial announced today that Vikram Pandit will make a strategic investment in JM Financial with potential additional investments in its NBFC, proposed bank and a joint distressed asset fund.
The JM Financial Group Chairman Nimesh Kampani said:
JM Financial and Vikram Pandit have known and worked with each other extensively for many years since the early days of the growth of financial services in India. We share similar values and are confident that the proposed association will create strong domestic financial services businesses with global best practices and reach. We are very excited to have Vikram as a strategic investor.
The Board of Directors of JM Financial Limited at its meeting held in Mumbai today approved the following:
1. Making an application for Banking License by JM Financial group in accordance with the terms of the Regulations and Guidelines issued by the Reserve Bank of India.
2. JM Financial will nominate Vikram Pandit as the non-executive chairman of the proposed bank. Vikram and Hari Aiyar will have the right to purchase shares upto the amount prescribed by the RBI in this entity.
3. Expansion of the lending and financing businesses of JM Financial by issuance of US $100 million of capital to Global Funds raised and managed by a firm led by Vikram Pandit. JM Financial will nominate Vikram as the non-executive chairman of the NBFC.
4. Formation of a distressed asset fund to be set up jointly by JM Financial and Vikram Pandit’s firm with an initial target capitalization of US$100 million, and
5. Strategic Investment of 3% equity stake by Vikram Pandit and Hari Aiyar in JM Financial Limited through issue of warrants.
Vikram Pandit said:
I continue to believe in the long term growth prospects of India. I have known Nimesh and JM Financial for over two decades and believe that, given the opportunity, JM Financial can provide the banking and financial services that the country needs.