JM Financial Home Loans and Indostar Capital Finance on Monday said that the companies are engaged in preliminary discussions to explore potential merger and listing of the retail mortgage portfolio of JM Financial and the home finance business of Indostar Home Finance including other mortgage-backed business of Indostar.
“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,” a statement from JM Financial said.
JM Financial Home Loans which is a part of the JM Financial group is focused on affordable housing finance and smaller ticket loans against property. As of December 2022, JM Home had a loan book of Rs 1,181 crore and AUM of Rs 1,272 crore with average ticket size of Rs 12 lakh and loan to value ratio of 55 per cent.
IndoStar Home Finance has a loan book of Rs 1,242 crore and AUM of Rs 1,526 crore with average ticket size of Rs 7.5 lakh and loan to value of 49 per cent as of December 2022.
