JM Financial Home Loans, a part of the JM Financial Group, has begun talks with IndoStar Capital Finance for a potential merger with the latter’s home finance business.
“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 company said Monday.
Both companies focus on the affordable housing market.
The discussions are non-binding and will depend upon due diligence and negotiation of commercial terms, sources familiar with the development said.
“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 said in a regulatory filing to stock exchanges.
JM Financial Home Loans has assets under management of ₹1,272 crore at the end of December 2022 while it operates through 78 branches across nine states in the west and the south. Its average loan size is ₹12 lakh and its loan-to-value of 55% as of December 2022.
IndoStar Home Finance, a wholly-owned subsidiary of IndoStar Capital Finance, has an AUM of ₹1,526 crore at the end of December 2022.
Source: Economic Times