Jio Financial up 3%; to acquire 79 mn shares of Jio Payments Bank from SBI

Jio Financial shares advanced 3.5 per cent in trade on BSE, logging an intraday high at Rs 208 per share. The buying on the counter came after the company's board approved acquisition of 7,90,80,000 equity shares of Jio Payments Bank from State Bank of India (SBI). The proposed acquisition is valued at Rs 104.54 crore.

 

Around 2:59 PM, Jio Financial share price was up 3.14 per cent at Rs 207.25 per share on BSE. In comparison, the BSE Sensex was down 0.11 per cent at 73,005.56. The market capitalisation of the company stood at Rs 1,31,668.86 crore. The 52-week high of the stock was at Rs 394.7 per share and the 52-week low was at Rs 198.6 per share. 

 

 

Jio Financial currently holds 82.17 per cent of the paid-up equity share capital of Jio Payments Bank Limited, a joint venture of the company and State Bank of India (SBI).

 

"The Board of Directors of the Company, at its meeting held today, have approved the acquisition of 7,90,80,000 equity shares of JPBL from SBI for an aggregate consideration of Rs. 104.54 crore. Post this acquisition, JPBL will become a wholly owned subsidiary of the company," the filing read. 

 

It added: The acquisition is not a related party transaction. None of the Company’s promoter/promoter group/other group companies have any interest in the above acquisition. 

 

The acquisition is subject to approval of the Reserve Bank of India (RBI) and is expected to be completed within 45 days post receipt of RBI approval.

 

Jio Financial Services is a financial services venture launched by Reliance Industries, which is one of India's largest conglomerates. It is part of the broader Jio ecosystem, which includes telecommunications, digital services, and technology, but Jio Financial focuses on providing a range of financial products and services.

 

In the past one year, Jio Financial shares have lost 37.7 per cent against Sensex's decline of 1 per cent.