Jio Financial invests Rs 1,000 crore in arm Jio Finance via equity

Jio Financial

Jio Financial Services Ltd (JFSL), a subsidiary of Reliance Industries Ltd, on March 27 invested Rs 1,000 crore in its subsidiary Jio Finance Limited (JFL) through equity. JFL will utilise the amount to fund its business operations, said JFSL in a stock exchange filing.

"Please note that the Company has today, subscribed to and has been allotted 1,73,77,412 equity shares of Rs 10 each of Jio Finance Limited (“JFL”), wholly owned subsidiary (“WOS”), for cash, aggregating Rs 1,000.24 crore," said JFSL.

"The transaction is between the Company and its WOS and hence a related party transaction. It is on an arm's length basis. None of the Company’s promoter / promoter group / other group companies have any interest in the above transaction," added JFSL.

On March 27, JFSL shares on BSE closed 1% higher at Rs 225.2 apiece.

Earlier this month, JFSL announced that its board approved acquisition of 7.9 crore shares of Jio Payments Bank Ltd (JPBL) from State Bank of India for Rs 104.54 crore.

Jio Financial Services, spun off from Reliance Industries Ltd, operates in the areas of investing and financing, insurance broking, payment bank, payment aggregator, and payment gateway services.

In May 2024, the company introduced a pilot version of the 'JioFinance' app, which offers UPI, digital banking, and other related services.

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