Shares of JM Financial today shot up nearly 17 per cent in morning trade, after the company said former Citigroup chief Vikram Pandit will buy stake in it.
Following the news, the scrip opened the day on a strong note and as the trade progressed, it jumped 16.77 per cent to Rs 27.50 — its 52-week high on the BSE. On the NSE, the stock surged 17.62 per cent to a one-year high of Rs 27.70.
The shares were trading up by 14.23 per cent at Rs 26.90 on the BSE and up by 14.44 per cent at Rs 26.95 on the NSE.
Market capitalisation of the company moved up by Rs 259 crore to Rs 2,029 crore.
Beginning a new innings, Vikram Pandit will spearhead Nimesh Kampani-led JM Financial’s proposed banking venture and will also make an investment in the financial services group.
Pandit will once again join hands with his business partner Hari Aiyar to buy three per cent stake in JM Financial for Rs 45 crore.
Pandit, Aiyar and Aparna Murthy Aiyar would together buy 2.32 crore warrants at Rs 19.50 per piece aggregating Rs 45 crore. JM Financial will issue over 1.16 crore warrants worth about Rs 22.6 crore to Pandit alone.
JM Financial will nominate Pandit as the non-executive chairman of its proposed banking venture in which he and Hari Aiyar would have the right to purchase shares up to the amount prescribed by RBI.