Jio Financial Boosts Stake in Jio Payments Bank to 82.17%, Stock Soars
Jio Financial Services Ltd increases its stake in Jio Payments Bank, stock price surges in early trade
Jio Financial Services LtdJio Payments BankStake IncreaseStock PriceRbi ApprovalReal EstateAug 28, 2024
The company has informed the stock exchange that it has subscribed to the equity shares of Jio Payments Bank for cash at par, aggregating ₹68 crore for its business purposes. With this investment, JFS's holding in Jio Payments Bank has increased from 78.95% to 82.17%.
The investment has been approved by the Reserve Bank of India (RBI) and is considered a related party transaction, made on an arm's length basis. None of the company's promoter, promoter group, and group companies have any interest in the above investment.
This development comes on the heels of Jio Financial Services receiving a nod from the Department of Economic Affairs to raise its foreign investment (including FPIs) in the company to 49% of the paid-up equity share capital on a fully diluted basis.
In August, JFS announced the incorporation of a wholly owned subsidiary, Jio Finance Platform and Service Limited, to focus on the distribution of financial products and allied services. This move was made a month after JFS received approval from the RBI for the conversion of the firm from a non-banking financial company (NBFC) to a core investment company (CIC).
JFSL shares have been performing well, trading 16.7% lower than its 52-week high of ₹394.70 touched on April 23, 2024. The NBFC stock has risen 55.67% in the last 12 months, 6.62% in six months, and 40.14% in the calendar year 2024.
As a CIC, JFS looks to expand its business into retail lending, merchant lending, leasing, payments bank operations, payments solutions, and insurance broking. The company has also entered into a joint venture with BlackRock to foray into the asset management business and has sought in-principle approval from SEBI for the same.
In the first quarter ended June 30, 2024, JFS reported a 6% year-on-year decline in its net profit at ₹312.63 crore as against ₹331.92 crore in Q1 FY24. However, sequentially, the profit increased by 0.6% from ₹310.6 crore in the March quarter of FY24.
Jio Financial Services Ltd is a holding company for a set of financial services businesses through its subsidiaries Jio Payment Solutions Ltd, Jio Payments Bank, Jio Insurance Broking Ltd, Jio Finance, and Jio Leasing.
About Jio Financial Services Ltd
Jio Financial Services Ltd is a non-banking financial company (NBFC) that provides a range of financial services through its subsidiaries. The company is a part of the Reliance Group, led by Mukesh Ambani.
About Jio Payments Bank
Jio Payments Bank is a payments bank that provides a range of financial services, including savings accounts, remittances, and payments solutions.
Frequently Asked Questions
What is the stake of Jio Financial Services Ltd in Jio Payments Bank?
Jio Financial Services Ltd has increased its stake in Jio Payments Bank to 82.17%.
How much did Jio Financial Services Ltd invest in Jio Payments Bank?
Jio Financial Services Ltd invested ₹68 crore in Jio Payments Bank.
What is the approval required for the investment?
The investment has been approved by the Reserve Bank of India (RBI).
What is the business of Jio Financial Services Ltd?
Jio Financial Services Ltd is a holding company for a set of financial services businesses, including retail lending, merchant lending, leasing, payments bank operations, payments solutions, and insurance broking.
What is the performance of Jio Financial Services Ltd's stock price?
Jio Financial Services Ltd's stock price has surged 1.64% to ₹328.90 on the BSE in early trade.
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