JM Financial may further increase stake in affordable housing firm India Home Loan

Nimesh Kampani led JM Financial subsidiary is likely to further increase its stake in the affordable housing lender India Home Loan from existing 24.50 per cent bought late last year. If market buzzes are to be believed, JM has been looking at further opportunities in upping its stake in the home loan entity. 

India Home Loan is a housing finance company which primarily offers retail home loan product for affordable housing segment with the ticket size of home loans upto Rs 50 lakh in metros and upto Rs 40 lakh in non-metros as per RBI guidelines.

Company offers loans to the customers for purchase of home, home improvement, home extension etc. The company operates from branches in urban, semi-urban & rural areas of Maharashtra and Gujarat with own offices, direct selling agents and business partners.

This comes amidst heightened focus of all the financial services companies be it banks or NBFCs to target lending for affordable segment in line with government’s aim of providing house to every citizen by 2022.

JM Financial lending business will be further boosted by increasing stake in India Home loans as it will be help the firm in diversifying its revenue stream which currently being dominated by fund-based business.

Earlier on December 6, 2016, J M Financial in a stock exchange filing said that its subsidiary had completed the acquisition of 24.5 per cent stake in India Home Loan on a preferential allotment basis by acquiring full holding of one of the promoters and another's non-locked-in shares and preferential allotment.

Housing finance market has been a hotbed of activities since the past year with several firms having been looking for opportunities to grow their business further by consolidating their market share in the affordable housing segment where demand potential is assumed to be humongous.

Stock of India Home loan has been on a dream run ever since the news broker out of JM Financial buying stake in the housing finance lender. Stock has delivered returns in excess of 125 per cent in the past three months.