New Delhi: Beginning a new innings, former Citigroup chief Vikram Pandit will spearhead Nimesh Kampani- led JM Financial's proposed banking venture and will also make a strategic investment in the financial services group.
India-origin Pandit will join hands once again with his business partner Hari Aiyar to buy three per cent stake in JM Financial for Rs 45 crore.
Pandit, Aiyar and Aparna Murthy Aiyar would together buy 2.32 crore warrants at a price of Rs 19.50 per piece, aggregating to Rs 45 crore. JM Financial will issue over 1.16 crore warrants worth about Rs 22.6 crore to Pandit alone.
Pandit, who had an unceremonious exit from Citigroup late last year, also plans to make investments in JM Financial's NBFC. He will also set up a USD 100-million distressed asset fund along with JM Financial.
"I continue to believe in the long-term growth prospects of India," Pandit said in a statement issued by JM Financial.
"I have known Nimesh and JM Financial for over two decades and believe that, given the opportunity, JM Financial can provide the banking and financial services that the country needs," he added.
JM Financial will nominate Pandit as the non-executive chairman of its proposed banking venture in which he and Hari Aiyar would have the right to purchase shares up to the amount prescribed by RBI.
In the board meeting held on Thursday, JM Financial decided to give USD 100 million to global funds managed by a firm led by Pandit. He will be nominated as the non-executive chairman of the NBFC also. It decided to apply for a bank licence as well.
Kampani, the chairman of JM Financial Group, said: "We are very excited to have Vikram as a strategic investor."
He said association with Pandit will create strong domestic financial services businesses with global reach.
Earlier in the day, shares of JM Financial surged 16 per cent to Rs 23.55 on the BSE.
Pandit, who shored up fortunes of Citi after the 2008 financial meltdown, along with Aiyar had co-founded Old Lane hedge fund which was later acquired by Citigroup.
India-origin Pandit will join hands once again with his business partner Hari Aiyar to buy three per cent stake in JM Financial for Rs 45 crore.
Pandit, Aiyar and Aparna Murthy Aiyar would together buy 2.32 crore warrants at a price of Rs 19.50 per piece, aggregating to Rs 45 crore. JM Financial will issue over 1.16 crore warrants worth about Rs 22.6 crore to Pandit alone.
"I continue to believe in the long-term growth prospects of India," Pandit said in a statement issued by JM Financial.
Advertisement
JM Financial will nominate Pandit as the non-executive chairman of its proposed banking venture in which he and Hari Aiyar would have the right to purchase shares up to the amount prescribed by RBI.
Advertisement
Kampani, the chairman of JM Financial Group, said: "We are very excited to have Vikram as a strategic investor."
Advertisement
Earlier in the day, shares of JM Financial surged 16 per cent to Rs 23.55 on the BSE.
Advertisement
COMMENTS
Advertisement
10 Additional Delhi, Bombay High Court Judges Made Permanent Fire At Veg Gulati On Delhi's Pandara Road, Restaurant Responds On Social Media Delhi Metro Launches International Flight Check-In Services At These Stations IAS Officer's Wife Who "Eloped" With Gangster Returns Home, Dies By Suicide INS Brahmaputra Severely Damaged In Fire, Lying On Its Side; Sailor Missing Kuwait Couple Divorces Within 3 Minutes Of Getting Married Due To This Reason Bangladesh PM's Office, Police Websites Hacked Amid Unrest Over Job Quota Centre Has Increased Its Budget For Welfare And Empowerment Of Women Internet Says Kamala Harris Is "Brat", And Her Campaign Is Embracing It Track Latest News Live on NDTV.com and get news updates from India and around the world.