2024-08-28 21:20:32
New Delhi: Reliance Industries (RIL) owner Mukesh Ambani’s company Jio Financial Services has increased its stake in another company. This time Jio Financial Services has bought 6.8 crore new shares in Jio Payments Bank. Jio Financial Services is already working in the world of finance through companies like Jio Payment Solutions, Jio Payments Bank, Jio Insurance Broking, Jio Finance and Jio Leasing. This announcement has come at a time when just a few days ago the company had talked about creating a new subsidiary Jio Finance Platform and Service. The Ambani-led NBFC has said that it has bought 6,80,00,000 new shares of Jio Payments Bank Limited (JPBL). The price of each share is Rs 10, that is, a total investment of Rs 68 crore has been made. Jio Financial Services has informed the stock market, ‘After this investment, the company’s stake in JPBL has increased from 78.95 percent to 82.17 percent.’ The company has also clarified that this investment is a ‘related party transaction’ and has been done with complete honesty. The company’s promoter, promoter group or group companies have no personal interest in this investment.
This is the third big announcement from Jio Financial
It seems that Ambani’s company is making a flurry of announcements these days. This is the third big announcement from Jio Financial Services in the last two weeks. On Saturday itself, the company had informed that it has received approval from the Department of Economic Affairs of the Ministry of Finance. Under this approval, permission has been granted to increase the limit of foreign investment (including FPI) to 49 percent while maintaining the existing foreign investment in the company.
What does increasing stake in Jio Payments Bank mean?
On Tuesday, Jio Financial Services shares closed in the green on BSE and the share price was Rs 323.60. In the last 52 weeks, the highest price of the company’s shares has been Rs 394.70 and the lowest price has been Rs 204.65.
Mukesh Ambani’s Jio Financial Services’ decision to increase its stake in Jio Payments Bank is a direct indication that the company wants to strengthen its hold in the field of digital payments and financial services. This move will make Jio Payments Bank even stronger. It will enable it to compete with other banks.