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CCI has approved JM Financial's acquisition of a 43% stake in JM Fin Credit Solutions.

Economy Business | Dated: 17 Oct 2024

The Competition Commission of India (CCI) has approved JM Financial Limited (JMFL) to acquire 43% of the total paid-up share capital of JM Financial Credit Solutions Limited (JMFCSL) for about Rs 1,282 crore. JMFL is the operating and holding company of the JM Financial Group.

🎯 Key Highlights:

  • - Once the transaction is completed, JMFL's stake in JMFCSL will increase from 46.68% to 89.67%.
  • - JMFCSL is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI) as a systematically important institution.

💡 Other Important Facts:

  • (i) The CCI board has approved JM Financial Services Company Limited (JMFSCL) to acquire 71.79% of the total paid-up share capital of JMFARC, a subsidiary of JMFL, for Rs 856 crore. This will increase JMFSCL's stake in JMFARC from 9.98% to 81.77%.
  • (ii) The goal is to use the expertise of JM Financial Group to achieve better risk-adjusted returns and move towards a diversified syndication model.
  • (iii) The Competition Commission of India (CCI) has approved the acquisition of the Home and Personal Care (HPC) division (non-food business) of Patanjali Ayurved Limited (PAL) by Patanjali Foods Limited (PFL) for Rs 1,100 crore.

📚 Test Your Knowledge:

What percentage stake has JM Financial recently acquired in JM Fin Credit Solutions?

Correct Answer: 43%

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