JM Financial, Vikram Pandit to invest to invest Rs 900 crore in real estate NBFC
Vikram Pandit is planning to invest around Rs. 540 crore for a stake of 50% while an investment of Rs. 360 crore has to be funded for the venture.
The former chief executive of Citigroup Vikram Pandit is planning to invest Rs. 900 crore in the real estate firms of the non-banking financial company NBFC. There are three people who are well accustomed to this development and they reportedly said that they already have a license for the existing NBFC. The funding of Vikram Pandit will be of 540 Crore for a stake of 50%.
The company has not yet hired anyone to lead the NBFC hence it will presently be run by the team former team. An association was announced in May 2013 where Pandit was a non-executive chairman of the firm. The financial service firm was looking forward to an entry into banking. Pandit is presently the chairman of TGG Group who has branches in cities like Chicago, New York and London. It is basically a consulting firm that deals with the behavior of science and data analysis. It has a special wing to take care of the non-profitable business as well, known as the Greatest Good. Recently, Pandit has managed to raise capital with the help of certain partners and he is using this money to fund the mentioned project. This is the basic strategy lying behind his investment.
Last year, the JM Financial was one of the twenty five applicants of banking licenses and this was granted this year in April. This particular company is keen on investing on institutional equity sales, investment banking, research centers, trading, broking and both private in corporate sectors. It is well exposed to the real estate firms via JM Financial Products Limited. The JM Financial property Fund managed to make about Rs. 400 crore in the year 2008 to invest in hospitality, residential projects and many other combined projects.
To this date, NBFC is one of the most important investors in the real estate projects. The developers manage to keep a tight leash on debt even under demanding situations. The JM Financial is planning to expand the lending to NBFC to about Rs. 2,500 by next year.
Source:
Live Mint
invest in hospitality, JM Financial Products Limited, JM Financial property Fund, NBFC, Real estate firms, Residential projects, Vikram Pandit
