Jio Financial Services Ltd (JFSL) announced on March 4 that its board has approved the acquisition of 7.9 crore shares of Jio Payments Bank Ltd (JPBL) from State Bank of India (SBI) for ₹104.54 crore.
Currently, JFSL holds 82.17% of JPBL’s paid-up equity share capital, while SBI is a minority partner. After this acquisition, Jio Payments Bank will become a wholly-owned subsidiary of JFSL.
The transaction is subject to approval from the Reserve Bank of India (RBI) and is expected to be completed within 45 days after RBI gives the necessary clearance, according to a stock exchange filing by JFSL.
At 2:45 PM on March 4, JFSL shares on NSE were trading 3% higher at ₹207 per share, reflecting positive investor sentiment towards the deal.
Jio Financial Services Expanding its Presence in Digital Finance
JFSL, which was spun off from Reliance Industries Ltd, operates in various financial segments, including investing and financing, insurance broking, payment banking, payment aggregation, and payment gateway services.
In May 2024, JFSL launched a pilot version of its ‘JioFinance’ app, offering UPI, digital banking, and other financial services.
Additionally, in April 2024, JFSL announced a strategic partnership with BlackRock Inc., a leading global investment management firm, to launch a wealth management and broking business in India.
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Source: Moneycontrol.
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