Jio Financial Services Invests ₹2,000 Crore in Jio Credit Ltd
Jio Financial Services Ltd on Thursday, February 26, announced an investment of nearly ₹2,000 crore in its wholly owned subsidiary, Jio Credit Ltd, through a fresh equity subscription, according to an exchange filing.The company subscribed to and received 3,35,71,923 equity shares of Jio Credit Ltd with a face value of ₹10 each at a premium of ₹585.70 per share. The total investment amounted to ₹1,999.88 crore. The transaction was completed in cash at 11:30 a.m. on the same day.
Jio Credit Ltd, a non banking financial company, will use the funds to support its business operations and expansion plans.
The company stated that the transaction qualifies as a related party transaction but was executed on an arm’s length basis. It clarified that none of its promoters, promoter group entities, or other group companies have any interest in the investment. No governmental or regulatory approvals were required for the transaction.
Share Price Movement
Shares of Jio Financial Services closed lower on Thursday, February 26, at ₹256.25 on the NSE, down 0.27 percent.Q3 Results
Separately, the company reported a consolidated net profit of ₹269 crore for the quarter ended December 31.Total income more than doubled year on year to ₹901 crore from ₹449 crore in the corresponding period last year, driven by growth across lending, payments, and asset management businesses.
Consolidated pre provisioning operating profit rose 7 percent year on year to ₹354 crore, while net income from business operations increased 4 percent to ₹386 crore.
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