Pandit, who had an unceremonious exit from Citigroup last year, also plans to make investments in JM Financial’s NBFC. He will also set up a $100-million distressed asset fund along with JM Financial
Beginning a new innings, former Citigroup chief Vikram Pandit will spearhead Nimesh Kampani- led JM Financial's proposed banking venture and will also make a strategic investment in the financial services group.
India-origin Pandit will join hands once again with his business partner Hari Aiyar to buy 3% stake in JM Financial for Rs45 crore.
Pandit, Aiyar and Aparna Murthy Aiyar would together buy 2.32 crore warrants at a price of Rs19.50 per piece, aggregating Rs45 crore. JM Financial will issue over 1.16 crore warrants worth about Rs22.6 crore to Pandit alone.
Pandit, who had an unceremonious exit from Citigroup late last year, also plans to make investments in JM Financial’s NBFC. He will also set up a $100-million distressed asset fund along with JM Financial.
“I continue to believe in the long-term growth prospects of India,” Pandit said in a statement issued by JM Financial.
“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,” he added.
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 the RBI (Reserve Bank of India).
In the board meeting held on Thursday, JM Financial decided to give $100 million to global funds managed by a firm led by Pandit. He will be nominated as the non-executive chairman of the NBFC also. It decided to apply for a bank licence as well.
Kampani, the chairman of JM Financial Group, said: “We are very excited to have Vikram as a strategic investor.”
He said association with Pandit will create strong domestic financial services businesses with global reach.
Pandit, who shored up fortunes of Citi after the 2008 financial meltdown, along with Aiyar had co-founded Old Lane hedge fund which was later acquired by Citigroup.
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