Jio Financial shares rise 4%, extend gains to 2nd day on plans to buy Jio Payments Bank stake from SBI for ₹105 cr

Stock market today: Shares of Mukesh Ambani-owned Jio Financial Services gained 4% in intraday deals on Wednesday, March 5, extending gains to the second day in a row, after the company announced plans to acquire the remaining shares of Jio Payments Bank from State Bank of India (SBI).

Jio Financial, which already holds a 82.17% stake in Jio Payments Bank, will acquire the remaining stake from its joint venture partner SBI. After this, Jio Payments Bank will become a wholly-owned subsidiary of Jio Financial.

"The Board of Directors of the Company, at its meeting held today, have approved acquisition of 7,90,80,000 equity shares of JPBL from SBI for an aggregate consideration of ₹104.54 crore," the company said in a filing during the fag end of the trading session on Tuesday.

The acquisition is subject to approval from central bank Reserve Bank of India and is expected to be completed within 45 days post receipt of RBI approval, the company informed exchanges.

Since its spin-off from the Mukesh Ambani-led conglomerate in 2023, Jio Financial has been rapidly expanding its operations. Recently, the company has been planning to establish a mutual fund business in partnership with US-based BlackRock.

Stock Price Trend

Jio Financial Services share price rose 4.60% to the day's high of ₹215.90 apiece, extending its rise to the second day, gaining over 7% during this period. The stock opened at ₹207.25, slightly higher than ₹206.35 apiece than its previous closing price.

Despite today's gains, Jio Financial Services stock has fared quite poorly in the last one year. The Reliance group company has lost 33% of its value in the last one month and 38% in the past six and three months each. Meanwhile, in the past one month, Jio Financial stock is down 12%.

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