Owner of Jio, billionaire Mukesh Ambani The Department of Economic Affairs has granted approval to Financial Services to raise the maximum amount of foreign investment, including FPIs, to 49% of the fully diluted capital of paid-up equity shares. Exchange statistics indicated that of the approximately 53% of shares that are publicly traded, foreign investors presently own 17.55% of the firm. According to their most recent announcement, Jio Financial Services might get up to 49% of its foreign investment from the company led by Reliance Industries.
Foreign Investments
The Mukesh Ambani-owned business had asked shareholders in May for permission to allow foreign investments including international private investors up to 49% of shares. In July 2023, Jio, a non-banking subsidiary of Reliance Industries Ltd., separated from its parent business.
According to first-quarter data this year, the company’s consolidated net profit decreased 6% year over year to Rs 313 crore in the quarter that ended in June from Rs 332 core the previous year. This decline was mostly caused by a decline in interest income and a rise in operational expenses.
Interest Revenue Decreased
Interest revenue decreased by 20% to Rs 162 crore in June 2024 from Rs 202 crore in the same month last year, while expenses surged to Rs 79 crore from Rs 54 crore, primarily due to a three-fold increase in staff costs to Rs 39 crore in June 2024.
Jio Financial announced in an investor presentation that came with the first quarter results that it had started offering digital insurance for cars and two-wheelers as well as loans secured by mutual funds in July. In addition, the company began ship leasing when it leased its first vessel through Reliance International Leasing IFSC Ltd (RILIL), a joint venture with Reliance Strategic Business Ventures Ltd, a group company situated in GIFT city, Gujarat.
Business Correspondents
Along with financing solar panels and IT equipment, the company has been given permission to grow its network of business correspondents (BCs) to 16,000 locations. The business reported that its joint venture with BlackRock for asset management is moving forward, with tech platforms and infrastructure reaching advanced stages of development.
Jio Financial Services announced on August 15 the creation of a new company called Jio Finance Platform and Service Limited, that has its registered office in Mumbai, in keeping with its intentions to enter the broking and wealth management industries.
