JM Financial Credit Solutions Ltd (JMFCSL) to Sell Stake in Home Loans Subsidiary

In a significant move, JM Financial Credit Solutions Ltd (JMFCSL), a wholly-owned subsidiary of JM Financial, has agreed to sell a 2.1% stake in its home loans subsidiary to Bajaj Allianz Life Insurance Company for Rs 65.5 crore. This transaction, as reported by PTI, involves the sale of 1.36 crore equity shares of JM Financial Home Loans Ltd (JMFHLL) at Rs 48 apiece.

Transaction Details and Impact

The deal, expected to be completed by August 31, will reduce JMFCSL’s holding in JMFHLL from 8.98% to 6.88%. Consequently, JM Financial’s effective stake in the home loans unit, through subsidiaries, will decrease from 98.76% to 96.66%.

Financial Highlights of JMFHLL

For the financial year ended March 31, 2025, JMFHLL reported a total income of Rs 368.45 crore, contributing 8.27% to JM Financial’s consolidated income. Its net worth stood at Rs 797.43 crore, accounting for 8.24% of the group’s consolidated net worth.

About Bajaj Allianz Life Insurance

Bajaj Allianz Life Insurance, a joint venture between Bajaj Finserv and Germany’s Allianz SE, is one of India’s leading private life insurers. It is important to note that the company is not part of JM Financial’s promoter group.

Clarification on the Stake Sale

JM Financial has clarified that the stake sale is not a related-party transaction and does not form part of any scheme of arrangement.