Jio Financial shares gain as board approves ₹15,825 crore fund raise

Jio Financial Services shares rose 3 per cent its board approved a ₹15,825 crore capital infusion from its promoter entities

Shares of Jio Financial Services rose over 3 per cent after the company's board approved a ₹15,825 crore capital infusion from its promoter entities through a preferential issue of warrants.

 

The company's stock rose as much as 3.56 per cent during the day to ₹331.7 per share, the highest level since July 11 this year. The stock pared gains to trade 2.9 per cent higher at ₹329.7 apiece, compared to a 0.27 per cent decline in Nifty 50 as of 11:28 AM. 

 

Shares of the company have recovered nearly 65 per cent from their March lows and currently trade at 3.5 times the average 30-day trading volume, according to Bloomberg. The counter has risen 10 per cent this year, compared to a 4.8 per cent advance in the benchmark Nifty 50. Jio Financial has a total market capitalisation of ₹2.08 trillion.   Track LIVE Stock Market Updates Here

 

Jio Financial board approves fund raise 

The company's board approved a ₹15,825 crore capital infusion from its promoter entities through a preferential issue of warrants. The funds will be raised through the issuance of 50 crore warrants priced at ₹316.50 each, convertible into one equity share of face value of ₹10 at a premium of ₹306.50, the company said in a stock exchange filing. 

 

According to the company statement, the warrants will be allotted to two promoter group entities- Sikka Ports & Terminals Ltd. and Jamnagar Utilities & Power Pvt. Ltd – subject to shareholder and regulatory approvals. Upon full conversion, the promoter group’s combined stake will rise by 10.17 per cent. The Ambani family-owned promoter entities currently own a 47 per cent stake in the company.

 

On July 19, Jio Financial Services entered a 50:50 reinsurance joint venture agreement with 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. 

Jio Financial Services Q1 results 

The company reported a marginal rise of 4 per cent in its net profit year-on-year (Y-o-Y) to ₹325 crore in the first quarter of the financial year 2026 (Q1FY26) from ₹313 crore, mainly due to a rise in expenses.

 

On a sequential basis, profit after tax increased 2.7 per cent. The company’s revenue from operations increased 47 per cent to ₹612 crore, as compared to ₹418 crore in the year-ago period. 

 

However, total expenses increased by 228 per cent to ₹260.51 crore. Finance costs were ₹98.8 crore during the reporting period, which was negligible in the year-ago period.