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Jio Financial Services Secures Approval to Increase Foreign Investment Limit to 49% Equity

Jio Financial Services

August 26, 2024

New Delhi, India

Jio Financial Services

Jio Financial Services Ltd., a key player in India’s financial services sector, announced on Saturday that it has received approval from the Department of Economic Affairs, Ministry of Finance, to increase foreign investment limits in the company to 49% of its total equity on a fully diluted basis. This marks a significant milestone for the Mukesh Ambani-owned company, which has been steadily expanding its footprint in the financial services industry.

Foreign Investment Approval: In May 2024, Jio Financial Services sought shareholder approval to enable foreign investments, including Foreign Portfolio Investors (FPIs), to account for up to 49% of its equity. The recent approval from the Ministry of Finance now clears the way for the company to attract more foreign capital, further bolstering its growth prospects.

Financial Performance: For the quarter ending March 2024, Jio Financial Services reported a 6% sequential increase in its consolidated net profit, reaching ₹311 crore, up from ₹294 crore in the December quarter. Despite this profit growth, the company’s consolidated revenue from operations remained relatively stable at ₹418 crore, compared to ₹414 crore in the previous quarter.

Strategic Partnerships: In April 2024, Jio Financial Services announced a strategic partnership with BlackRock, Inc., a global leader in investment management, to launch a wealth management and broking business. This joint venture aims to transform India’s asset management industry by providing digital-first investment solutions and expanding access for Indian investors. The collaboration is expected to strengthen Jio Financial’s position in the rapidly growing financial services market.

Market Performance: Jio Financial Services Ltd. went public in August last year, debuting with a market capitalisation exceeding ₹1.5 lakh crore. On Friday, the company’s shares closed at ₹327.05 apiece, down 0.77%.

The approval to increase foreign investment limits is a crucial development for Jio Financial Services, as it positions the company to attract substantial foreign capital and further its growth in the financial sector. With its strategic partnerships and steady financial performance, Jio Financial is well-positioned to capitalize on the expanding opportunities in India’s financial services market. Investors and market watchers will be closely monitoring the company’s next moves as it continues to build on its strong foundation.

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