JM Financial Home Loans Limited and Indostar Capital Finance Limited explore potential strategic options, know more here!

The stock has a PE of 8.14x whereas the sectoral PE is 23.8x.     

JM Financial Home Loans Limited (“JM Financial”) and Indostar Capital Finance Limited (“Indostar”), today announced that the companies are engaged in preliminary discussions to explore potential strategic options including potential combination and listing of the retail mortgage portfolio of JM Financial and the home finance business of Indostar Home Finance Private Limited including other mortgage-backed business of Indostar.  

JM Financial has a long-term strategic interest in the home loan and such mortgage-backed businesses and looks forward to scaling these businesses to the next phase of its growth. The discussions are currently at a preliminary stage and non-binding in nature and any transaction concerning JM Financial and Indostar will be subject to satisfactory due diligence, negotiation of commercial terms, execution of definitive agreements and receipt of all relevant regulatory and other approvals.  

JM Financial Ltd is an integrated and diversified financial services group. Its primary businesses include mortgage lending, distressed credit, asset management. It is also engaged in investment banking and the management of private equity funds. 

Talking about the financials, JM Financial has a market cap of over 5,000 crore. The company reported positive numbers in its Quarterly Results and annual results. The stock has a PE of 8.14x whereas the sectoral PE is 23.8x.     

Indostar Capital Finance Ltd is a non-banking finance company (NBFC) registered with the Reserve Bank of India as a non-deposit-taking company. Talking about the financials, Indostar Capital Finance has a market cap of Rs 1,600 crore. According to the financials, the company reproted excellent numbers in its quarterly results (Q3).

Today, shares of JM Financial surged 0.39 per cent to Rs 61.15 per share whereas shares of Indostar Capital Finance Ltd surged 1.27 per cent to Rs 131.15 per share. 

Investors should keep an eye on this Small-Cap stocks.