The approval allows the company to increase its foreign investment limit to 49% of its total equity on a fully diluted basis, according to a filing
This move will boost participation from Foreign Portfolio Investors (FPIs) and other global investors
At the current level, foreign investors hold 17.55% of the company's shares, out of a public float of nearly 53%
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Three months after seeking shareholder approval to raise its foreign investment cap to 49%, Jio Financial Services, the nonbanking arm of Reliance Industries, has now received the nod from the Department of Economic Affairs under the Ministry of Finance.
The approval allows the company to increase its foreign investment limit to 49% of its total equity on a fully diluted basis, according to a filing.
This move will boost participation from Foreign Portfolio Investors (FPIs) and other global investors.
At the current level, foreign investors hold 17.55% of the company’s shares, out of a public float of nearly 53%.
It is pertinent to note that Jio Financial Services was demerged from its parent company in July last year to be listed on the stock exchanges in August.
Shares of Jio Financial were trading at INR 323 at 1 PM, down 1.27% from the previous closing.
The development follows the company securing approval from the Reserve Bank of India (RBI) to convert itself into a core investment company (CIC) from a non-banking financial company (NBFC).
This comes close on the heels of the company continuing to expand its presence in the financial services sector.
Earlier this month, it incorporated a new wholly owned subsidiary, Jio Finance Platform and Service Limited to streamline the business of distribution of financial products and allied services.
Jio Financial Services currently offers digital banking services, such as UPI, mutual fund loans, and plans to expand into home loans in the near future. The app has already gained traction with 5 lakh downloads in July 2024.
On the financial front, the company incurred a a slight dip in profits, reporting a net profit of INR 313 Cr for Q1 FY25, down 5.7% year-on-year from INR 332 Cr in Q1 FY24. However, operating revenue increased marginally to INR 418 Cr from INR 414 Cr in the same period.
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