Jio Financial Services Boosts Stake in Jio Payments Bank to 82%

28 Aug 2024 , 11:23 AM

Jio Financial Services Ltd (JFS) has increased its shareholding in Jio Payments Bank Ltd (JPBL) to 82.17%.

The company subscribed to 6.8 Crore equity shares at ₹10 per share, resulting in a total investment of ₹68 Crore. This investment, completed on August 27, 2024, aligns with JFS’s strategy to strengthen its financial services portfolio.

The transaction was conducted at arm’s length and classified as a related-party transaction, as disclosed in a regulatory filing. No promoters, promoter group, or group companies of JFS have any interest in this investment.

At the time of writing, shares of Jio Financial Services Ltd (JFS) is trading at ₹328.80 which is a 1.61% gain than the previous close. Jio Financial Services Ltd (JFS) has witnessed a 55% gain since the beginning of the year, and 40% gain since the beginning of the year.

JFS obtained necessary approvals from the Reserve Bank of India (RBI) prior to making this investment.

The increased stake is expected to enhance JFS’s market position as it continues to expand its financial services offerings.

Recently, JFS received authorization from the Department of Economic Affairs to raise its foreign investment cap to 49%, aiming to attract foreign portfolio investors (FPIs) and other global investors. Currently, foreign investors hold 17.55% of JFS shares.

JFS has also announced a collaboration with BlackRock Inc. to establish a wealth management and broking business, marking another step in its business expansion efforts.