The Jio Financial Services Subsidiary Jio Finance Receives an Investment of ₹1,000 Crore
Although it was carried out at arm’s length, the transaction between Jio Financial and its subsidiary is eligible as a related-party transaction. On the BSE, Jio Financial Services Limited’s shares closed at ₹225.90, up ₹3.50, or 1.57%.
On Thursday, March 27, Jio Financial Services Limited said that it has subscribed for 1,73,77,412 equity shares at a price of ₹10 apiece, investing ₹1,000.24 crore in its wholly-owned subsidiary, Jio Finance Limited (JFL). The financial infusion will support JFL’s business activities.
“Please take note that the business has paid cash totaling Rs. 1000.24 crore for 1,73,77,412 equity shares of Rs 10/-each of Jio Finance Limited (“JFL”), a wholly owned subsidiary (“WOS”), which it has subscribed for and been granted. In a regulatory statement, Jio Financial Services stated that JFL will use the money to finance its business activities.
Additionally, Jio Financial Services purchased 8.5 crore equity shares at a price of ₹10 apiece, investing ₹85 crore in (JPBL). Supporting JPBL’s business activities is the goal of the financial injection. Due to this investment, Jio Financial’s ownership of JPBL has grown from 82.17% to 85.04%.
Although it was carried out at arm’s length, the transaction between Jio Financial and its subsidiary is eligible as a related-party transaction. The investment does not need government or regulatory permission.
For the third quarter ending December 2024, Jio Financial Services recorded a 0.3% YoY growth in net profit, or ₹294.8 crore. Jio Services reported a net profit of ₹293.8 crore for the same quarter of the previous fiscal year.
Operational revenue for the firm increased by 6% to ₹438.4 crore from ₹413.6 crore during the same period of the previous fiscal year. The assets under management (AUM) of Jio Financial Services increased to ₹4,199 crore from ₹1,206 crore in the second quarter of FY25.
Additionally, the payments bank grew strongly by a 25% quarter-over-quarter increase in its CASA (Current Account and Savings Account) client base to 1.89 million. JFSL also integrated its payment systems with JioBharat.
