 "Mukesh Ambani")
The Mukesh Ambani family is expected to invest a significant portion in Jio Financial Services Ltd's capital raise of up to ₹10,000 crore. The company’s board will meet on Wednesday to evaluate a range of fundraising options, including a rights issue, preferential allotment, qualified institutional placement, or a combination thereof, according to people familiar with the matter.
The promoters — the billionaire Ambani family — are likely to increase their stake from the current 47 per cent to more than 51 per cent, they said.
The new shares are expected to be priced between ₹320 and ₹325 each, subject to board and regulatory approvals. Shares of Jio Financial closed at ₹321 apiece on Tuesday, valuing the company at ₹2.03 trillion.
Spokespersons for Reliance Industries Ltd and Jio Financial Services did not respond to emails sent for comments. Final details of the fundraise and the Ambani family’s exact contribution are expected to be disclosed following the board meeting.
The Ambani family is not alone in bolstering its financial services company with fresh capital. Earlier this month, Adar Poonawalla’s promoter entity approved a ₹1,500 crore infusion into Poonawalla Fincorp, boosting its net worth to ₹9,700 crore and supporting its retail expansion strategy. Tata Capital, the unlisted financial services arm of Tata Sons, is also planning a $2 billion initial public offering before September to fund its growth in the fast-expanding Indian financial services market.
Jio Financial, which was demerged from Reliance Industries in July 2023, is actively scaling its presence in lending, insurance, and asset management. Bankers said a new round of funding would strengthen the company’s balance sheet ahead of a broader entry into markets like insurance.
On July 19, Jio Financial Services entered a 50:50 reinsurance joint-venture agreement with the Munich-based Allianz group through its wholly owned subsidiary Allianz Europe B V. The company also signed a non-binding agreement with the Allianz group to form additional joint ventures in India’s life and general insurance sectors.
On a digital-first model, Jio Financial operates an integrated platform that helps Indians borrow, transact, save, and invest. The company has also formed a joint venture with BlackRock, the world’s largest asset manager, to provide asset management, wealth management, and broking services in the country. Jio BlackRock’s first new fund offering raised ₹17,500 crore from investors earlier this month.
Jio Financial Services, classified as a core investment company, delivers its suite of offerings through its business units, such as Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank.
