CCI approves acquisition of paid up share capital of JM Financial Credit Solutions Limited by JM Financial Limited

New Delhi [India], October 9 : The Competition Commission of India (CCI) has granted approval for transactions including the acquisition of 42.99 per cent of the total paid-up share capital of JM Financial Credit Solutions Limited (JMFCSL) by JM Financial Limited (JMFL) and the acquisition of 71.79 per cent of the total paid-up share capital of JM Financial Asset Reconstruction Company Limited (JMFARC) by JMFCSL.
According to CCI, this proposed combination involves simultaneous acquisitions aimed at strengthening JM Financial's foothold in the financial sector.
JM Financial Limited, as the operating and holding company of the JM Financial Group, plays a crucial role in providing integrated and diversified financial services.
It is a publicly listed entity on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). JMFL's core operations encompass investment banking, private equity fund management, and the provision of private wealth and portfolio management services.
JM Financial Credit Solutions Limited, a subsidiary of JMFL, is classified as a systemically important non-deposit-taking Non-Banking Finance Company (NBFC).
Registered with the Reserve Bank of India (RBI), JMFCSL is categorised as a middle-layer NBFC, primarily engaged in wholesale lending activities, with a focus on real estate and corporate financing.
On the other hand, JM Financial Asset Reconstruction Company Limited operates as an asset reconstruction company, also registered with the RBI under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
JMFARC specialises in acquiring stressed assets from banks and financial institutions and implementing resolution strategies for those acquired assets.