JM Financial surges 10% after allotting 3.77 lakh shares to staff under ESOP

Shares of JM Financial surged 10 percent on December 15, following a change in management and allotment of equity shares resulting from the exercise of stock options by eligible employees. The company has appointed Chirag Negandhi as a senior management person (SMP), effective December 18.

“Negandhi brings with him over two decades of leadership expertise in capital markets. He has led some of India’s largest equity raises and worked closely with several leading business houses,” JM Financial said in a regulatory filing.

At 1:48pm, JM Financial shares traded 10 percent higher at Rs 98.10 on the National Stock Exchange (NSE). So far this year, JM Financial shares have risen 32 percent, outperforming benchmark Nifty 50 which has delivered a return of over 16 percent during this period.

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Additionally, in accordance with the Employees’ Stock Option Scheme, the Allotment Committee of the Board allocated a total of 3.77 lakh equity shares, each with a face value of Re 1. “Subsequent to the allotment of the equity shares, the paid-up equity share capital of the company is Rs 95.55 crore representing 95.55 crore equity shares of the face value of Re 1 each,” the company said.

For the quarter ended September 2023, JM Financial reported a total revenue of Rs 1,214 crore, up 38 percent from Rs 877 crore during the same period in 2022. Its net profit rose 8 percent to Rs 195 crore from Rs 180 crore reported in Q2 FY23.

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The company’s consolidated loan book stood at Rs 15,808 crore, an increase of 8 percent on-year for Q2FY24. JM Financial Asset Reconstruction company’s AUM stood at Rs 15,114 crore as of September 2023, up 33 percent on-year from Rs 11,349 crore in the same quarter a year ago.

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