| With this restructuring, JM Financial would be the holding company of JM Financial group, which has interests in investment banking, asset management, retail and institutional equity and fixed income broking. |
| The group plans to expand in other areas such as commodities, private equity and equity financing. The board of JM Financial has appointed M P Chitale & Associates to recommend a fair swap ratio for the merger. |
| At present, JM Securities holds 51 per cent stake in JM Morgan Stanley Private, which offers retail and fixed income broking services through its two fully owned subsidiaries. |
| JM Financial holds 49 per cent in JM Morgan Securities, the institutional broking arm, and 10 per cent in the domestic mutual fund business. The rest 90 per cent stake in the asset management business is held by the family. |
| As part of the restructuring, the group would also transfer 39 per cent stake held by the family in the asset management business to JM Securities. |
| This would effectively take the stake held by JM Financial in the asset management business up to 49 per cent depending on regulatory approvals. |
| Nimesh Kampani, chairman of JM Financial, said. "Our objective is to bring all our business interests under one common umbrella" said Kampani. |
| Another privately held group company JM Financial Products, which is involved in equity financing, would also be transferred to JM Securities and eventually consolidated under JM Financial. JM Financial is the flagship company of JM Financial group and had a market capital of Rs 386 crore. |
| In fiscal 2005, the company posted sales of Rs 13.72 crore and net profit of Rs 9.48 crore. The stock closed, at Rs 375 today, hitting the 10 per cent circuit limit. |
| About 1.09 lakh shares were traded on the Bombay Stock Exchange. Over the past four trading sessions, the stock had gained 30 per cent and doubled over the past one-and-a-half month. |
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