Jio Financial Services' board will meet on July 30 to discuss a plan to raise ₹10,000 crore in capital
The company is reportedly exploring funding options, including preferential allotment, qualified institutional placement (QIP), or a combination of both
Mukesh Ambani Likely to Infuse Funds in Jio Financial, Looks to Up Stake Over 51%
The fund raise will significantly help Jio Financial Services to scale its presence in lending, insurance, and asset management and help in strengthening company’s financial health ahead of its entry into segments like insurance
Summary
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Jio Financial Services board is set to meet on July 30 to discuss a financial roadmap to raise ₹ 10,000 crore capital, including preferential allotment, qualified institutional placement, or a combination of both. The Mukesh Ambani family is also likely to infuse a significant sum towards the ₹ 10,000 crore fund raise and might increase their stake in the company from current 47% to over 51%, the Economic Times reported.
“The promoters are likely to raise their stake to 51% from the current 47% through a preferential issue, with shares expected to be priced at ₹318 apiece,” ET reported, citing a source.
The development will mark a significant step towards scaling Jio Financial Services presence in lending, insurance, and asset management and help in strengthening company’s financial health ahead of its entry into segments like insurance.
In 2023, Reliance Industries had demerged its financial services arm Reliance Strategic Investments as a part of its group restructuring. The demerged entity was later renamed Jio Financial Services and listed separately.
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It is a non-banking financial company (NBFC) and offers a wide range of products, including Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank. The financial services firm operates as a core investment company (CIC) registered with the Reserve Bank of India.
To strengthen its foothold in the sector and support the goal of “Insurance for All by 2047”, Jio Financial Services entered a 50:50 domestic reinsurance joint venture with the Munich-based Allianz group via its wholly owned subsidiary Allianz Europe B V on July 18. Additionally, two companies have inked a non-binding agreement for setting up an equally owned joint venture for both general and life insurance business in the country.
Besides this, the company also has a JV with BlackRock that offers asset and wealth management, and broking services in the country.
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