JM Financial to transfer wealth management biz to subsidiary

JM Financial will transfer its private wealth management business to the wholly-owned subsidiary JM Financial Services through a slump sale for ₹11 crore.

The transfer, which will come into effect from April 1, is aimed at consolidating the group’s wealth management services under a unified structure.

The private wealth business contributed ₹56.09 crore in revenue (6.84 per cent of total revenue) and had a net worth of ₹33.78 crore (0.82 per cent of total net worth) as of March 31, 2024.

The transaction will be executed through a business transfer agreement, which was approved by the board. The final agreement is expected to be signed by May 15, 2025.

Private wealth division

JM Financial stated that the move is part of its strategy to integrate the private wealth division with JMFSL’s existing businesses, such as broking, margin funding, and other financial products.

Since JMFSL is a wholly-owned subsidiary, the transaction qualifies as a related party transaction but has no impact on JM Financial’s consolidated financials.

The company clarified that the transfer does not form part of any scheme of arrangement and is not subject to SEBI’s Regulation 37A under the Listing Obligations and Disclosure Requirements (LODR) Regulations.