Jio Financial Services stock jumps 3% to 6-month high after capital infusion in payments bank arm

Jio Financial Services share price in focus today: Shares of Jio Financial Services  (JFSL) extended their gains for the third straight session on Thursday, June 26, rising 3% intraday to touch a six-month high of ₹312 per share, mirroring the positive trend in the Indian stock market.

The rally comes after the company announced on Wednesday that it has infused ₹190 crore into its payments banking arm, Jio Payments Bank Ltd. According to its regulatory filing, JFSL has been allotted 19 crore equity shares of ₹10 each in the wholly owned subsidiary, with the investment made in cash at face value.

JFSL clarified that the transaction qualifies as a related-party transaction, as it involves the company and its wholly owned unit. However, it added that the deal was conducted on an arm's-length basis and that no promoter, promoter group, or related group entities had any interest in the transaction.

Just last week, JFSL acquired the remaining 17.8% stake, amounting to 7.91 crore shares, held by the State Bank of India in Jio Payments Bank for ₹104.54 crore. The acquisition has made Jio Payments Bank a wholly owned subsidiary of JFSL.

Jio Financial Services share price trend

Shares of Jio Financial Services have rebounded sharply from their April lows, gaining 55% to trade at ₹310 apiece. Jio Financial Services Limited—formerly known as Reliance Strategic Investments Limited, the demerged financial arm of Reliance Industries—entered the stock market on August 21, 2023. It debuted at ₹265 per share on the BSE and ₹262 per share on the NSE, slightly above its discovered price of ₹261.85.

The company operates as a non-deposit-taking, non-banking financial company, specializing in retail lending, merchant lending, payments bank operations, payment solutions, and insurance broking.

On June 17, Jio BlackRock, a 50:50 joint venture between Jio Financial Services (JFSL) and BlackRock, introduced Aladdin, which the company described as a unique investment analytics and risk management platform.

In late May, Jio BlackRock Mutual Fund received SEBI’s approval to commence operations as an investment manager for its mutual fund business in India. On June 11, the company also informed the exchanges that Jio BlackRock Investment Advisers (JBIAPL) had received approval from the Securities and Exchange Board of India (SEBI) to operate as an investment adviser.

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