Cyril Amarchand Mangaldas Advises JM Financial, Its Subsidiaries

Cyril Amarchand Mangaldas (“CAM”) advised JM Financial Limited (“JMFL”) and its subsidiaries (JM Financial Credit Solutions Limited, a middle layer NBFC-ICC (“JM CSL”), and JM Financial Asset Restructure Company (“JM ARC”)) on the consolidation of the holdings of JMFL in JM CSL and JM ARC. Both JM CSL and JM ARC are high value debt listed entities.

The transaction involved acquisition of a 48.96 per cent stake in JM CSL by JMFL from INH Mauritius 1 (a GIC backed entity) (in one or more tranches) for a total consideration of INR 1,460 Crores, with Tranche I being the acquisition of 42.99 per cent shareholding in JM CSL for a consideration of approx. INR 1,282 Crores; and sale of 71.79 per cent in JM ARC by JMFL to JM CSL for approx. INR 856 Crores. The share purchase agreements for the sale and purchase of shares were executed on July 6, 2024, and the consummation of the transaction is subject to customary conditions precedents, including approvals from regulatory authorities.

CAM played a crucial role which involved advising and assisting the group entities in meticulously preparing and finalizing all transaction documents and providing guidance on the applicable laws for the implementation of the transaction, including the necessary applications to regulatory authorities for consummation of the transaction.

The General Corporate team of Cyril Amarchand Mangaldas advised on the matter, under the overall guidance of Cyril Shroff, Managing Partner; and L .Viswanathan, Senior Partner.

The transaction team comprised of L. Viswanathan Senior Partner, Ruetveij Pandya, Partner;  Molla Hasan, Partner; Abhilasha Malpani, Principal Associate; Vishvas Bharadwaj, Senior Associate; Disha Tulsyan, Associate; and Anoushka Ishwar, Associate; with assistance from Nitya Ravichandra, Associate.

Anand Sinha, Senior Advisor; and Lily Vadera, Senior Advisor; provided strategic inputs and guidance on RBI related aspects.

Jian Johnson, Partner; & Karthik Narayan, Senior Associate; advised on the RBI related aspects of the transaction.

Avaantika Kakkar, Partner & Head Competition Law; and Dhruv Rajain, Partner; with support from Vanya Agarwal, Associate; advised on the competition law aspects of the transaction.