Jio Financial Services has upped its investment in Jio Payments Bank.
What Happened: Jio Financial Services has subscribed to an additional 6.8 crore equity shares of Jio Payments Bank, each priced at ₹10, amounting to ₹68 crore, the company said in a press release on Tuesday.
With the investment, its stake in the company has increased from 78.95% to 82.17%.
See Also: Govt Not Looking To Sell Vodafone Idea Stake, Reviewing ₹24,700 Cr FBG Waiver Demand: Report
Last month, the financial arm of Reliance Industries obtained the Reserve Bank of India’s approval to turn itself from a non-banking financial company (NBFC) to a core investment company (CIC).
The conversion to CIC has restricted the firm from active trading in investments, with only block sales for dilution or disinvestment purposes being allowed. Financial activities have been restricted to providing loans to group companies, issuing guarantees and investing in specified financial instruments.
At the same time, it enabled Jio to delineate its various business units and unlock value discovery for its investors while also being in better compliance with regulation and allocating capital more efficiently.
Price Action: Jio Financial Services settled 0.17% higher at ₹323.80 on Tuesday.
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