Ambani’s Jio Financial will invest an amount of Rs. 3 crore towards initial subscription of 30,00,000 equity shares of face value Rs. 10/- each.
Jio Financial Services has recently received approval from the Department of Economic Affairs to increase its aggregate limit of foreign investment (including FPIs) to 49% of the paid-up equity share capital on fully diluted basis. Foreign investors currently hold 17.55% stake in the company out of the close to 53% public float of shares, exchange data showed.
Jio Financial Services is expected to shape up the fintech sector by tapping into India’s large potential for retail lending and payment services. These businesses tie in with Reliance’s existing digital and retail businesses, thus providing it a vast scope of growth.
Jio Financial Services Ltd., the non-banking company of Reliance Industries Ltd, was demerged from its parent in July 2023. While the company has forayed into various businesses such as secured and unsecured lending, digital equipment leasing, supply chain financing, insurance broking, payment bank and payment aggregator and payment gateway services.
Jio Financial Services the non-banking company of Reliance Industries said its consolidated net profit fell 6% year-on-year to Rs 313 crore in the quarter ended June 2024 from Rs 332 core a year ago mainly due to a fall in interest income and amidst an uptick in operating expenses.Interest income fell 20% to Rs 162 crore in June 2024 from Rs 202 crore a year ago while expenses increased to Rs 79 crore from Rs 54 crore a year ago, mainly as staff expenses increased more than three time times.