Jio Financial Services Boosts Stake in Jio Payments Bank: Major Development

Jio Financial Services Ltd’s shares climbed on Tuesday following the Reliance Industries Ltd unit’s decision to increase its stake in Jio Payments Bank from 78.95% to 82.17%. The Mumbai-based company informed shareholders via an exchange filing that it had subscribed to 6.8 crore shares of Jio Payments Bank Ltd (JPBL) for Rs 68 crore.

On the NSE, Jio Financial Services shares rose by 0.17% to Rs 323.80, outperforming the Nifty index’s marginal gain of 0.03%.

This move follows the company’s approval from the Department of Economic Affairs, Ministry of Finance, to raise its foreign investment cap to 49% of its total equity on a fully diluted basis.

Spun off from Reliance Industries Ltd, Jio Financial Services operates in investment and financing, insurance broking, payment bank services, payment aggregation, and payment gateway services. In May, the company launched a pilot version of the ‘JioFinance’ app, offering UPI, digital banking, and related services.

In April 2024, the company announced a partnership with global investment giant BlackRock Inc. to launch a wealth management and broking business.

According to BSE data, the stock has delivered a remarkable 52.46% return over the past year.