Jio Financial Services secures approval to increase foreign investment cap to 49%

This move is seen as a strategic effort to attract substantial foreign capital and boost the company’s growth prospects.

Jio Financial Services Ltd. announced on Saturday that it has received approval from the Department of Economic Affairs, Ministry of Finance, to increase its foreign investment limit to 49 percent of its total equity on a fully diluted basis. This approval will enable greater involvement from Foreign Portfolio Investors (FPIs) and other international investors.

Earlier in May 2024, the company, owned by Mukesh Ambani, sought shareholder consent to permit foreign investments up to the 49 percent mark. This move is seen as a strategic effort to attract substantial foreign capital and boost the company’s growth prospects.

In its financial results for the quarter ending March 2024, Jio Financial Services reported a 6 percent rise in consolidated net profit, reaching Rs 311 crore, up from Rs 294 crore in the December quarter. Meanwhile, consolidated revenue from operations remained steady at Rs 418 crore, compared to Rs 414 crore in the previous quarter.

In April, Jio Financial Services announced a partnership with BlackRock, Inc. to establish a wealth management and broking business. This joint venture aims to transform India’s asset management landscape by offering digital-first investment solutions and expanding access for Indian investors. The collaboration with BlackRock marks a significant advancement in Jio Financial’s strategy to grow its presence in the wealth management sector.

Jio Financial Services went public in August of the previous year, starting with a market capitalization of over Rs 1.5 lakh crore. On Friday, shares of Jio Financial Services Ltd. closed at Rs 327.05 each, reflecting a 0.77 percent decrease.

The approval to increase the foreign investment limit is expected to further strengthen Jio Financial’s growth path, attracting more foreign investments and solidifying its position in the rapidly expanding financial services market.

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