Jio Financial ups stake in Jio Payments Bank to 82.17% for Rs 68 cr

Jio Financial Services (JFS) on Tuesday increased its stake in Jio Payments Bank to 82.17 per cent for Rs 68 crore, as per an exchange filing.

The company subscribed to 6.8 crore equity shares of Jio Payments Bank for its business purposes.

Post the investment, the company’s holding increased to 82.17 per cent from 78.95 per cent. This transaction was executed on an arm's length basis and is classified as a related-party transaction.

As per the exchange filing, “The Company has today, at around 1:30 p.m. (IST), subscribed to 6,80,00,000 equity shares of Rs 10 each of Jio Payments Bank Limited (JPBL), for cash at par, aggregating Rs 68 crore for its business purposes. Post this investment, the Company’s holding in JPBL has increased from 78.95 per cent to 82.17 per cent.”

None of the company's promoters, promoter group, or group companies have any interest in the investment. The company received approval from the Reserve Bank of India (RBI) prior to the investment and does not require any other approvals, it added.

Recently, JFS had received approval from the Department of Economic Affairs to raise its foreign investment limit (including FPIs) in the company to 49 per cent of its total equity on a fully diluted basis.

Foreign investors held 17.55 per cent of JFS shares as of June 2024.