Former Citigroup chief Vikram Pandit will buy stake in JM Financial and also has plans to make investments in the group's proposed banking venture.
India-origin Pandit would make a strategic investment in JM Financial which will issue over 1.16 crore warrants worth about Rs 22.6 crore to him, JM Financial said in a statement.
An integrated financial services firm, JM Financial would nominate Pandit as the non-executive chairman of its proposed banking venture.
Pandit and Hari Aiyar will also have the right to purchase shares up to the amount prescribed by the Reserve Bank of India in the proposed bank, JM Financial said in a statement.
"I continue to believe in the long-term growth prospects of India," Pandit said.
"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," Pandit added.
JM Financial Group Chairman Nimesh Kampani said: "We are very excited to have Vikram as a strategic investor."
Kampani further said that he and Pandit share similar values and expressed confidence that their association would create strong domestic financial services businesses with global best practices and reach.
Pandit, who made an unceremonious exit from Citi after shoring up its fortune following the 2008 global financial meltdown, would also set up a "distressed asset fund", entailing an initial investment of USD 100 million, along with JM Financial.
Further, JM Financial would provide USD 100 million capital to global funds raised and managed by a firm led by Pandit.
JM Financial would also nominate Pandit as the non-executive chairman of the NBFC, the statement said.
These decisions were approved by JM Financial board in its meeting today.
