Jio Financial’s Subsidiary Invests ₹2.50 Crore in Reliance International Leasing IFSC Ltd

On March 27, 2024, Jio Financial Services Ltd stated in an exchange filing that the company’s wholly-owned subsidiary has invested in Reliance International Leasing IFSC Limited.

Jio Financial Services’ Expansion Move

On Wednesday, Jio Financial Services Ltd informed the exchanges that their wholly-owned subsidiary, Jio Leasing Services Limited (JLSL), along with its nominees, invested ₹2.50 crore towards the initial subscription of 25,00,000 equity shares of ₹10 each of Reliance International Leasing IFSC Limited (RILIL), for cash at par.

As per the filing, Reliance International Leasing IFSC Limited was incorporated on February 01, 2024, and is a 50:50 joint venture between Jio Leasing Services Limited and Reliance Strategic Business Ventures Limited (a wholly owned subsidiary of Reliance Industries Limited). Reliance International Leasing IFSC Limited will be involved in the business of operating leases of vessels, ships and voyage charters in the International Financial Services Centre (IFSC) located at Gujarat International Finance Tec-City (GIFT City), Special Economic Zone (SEZ), Gujarat.

The company further added, “The investment does not fall within related party transaction. None of the Company’s Promoter, Promoter Group and other group companies have any interest in the above investment. No governmental or regulatory approvals were required for the above investment.”

Investment in Jio Payments Bank Limited

In another development, Jio Financial Services Ltd informed the exchanges about the investment in Jio Payments Bank Limited. They mentioned that on Wednesday around 1:00 PM, the company subscribed to 40,00,000 equity shares of ₹10 each of Jio Payments Bank Limited for cash at par, aggregating ₹4 crore for its business purposes. After the transaction is completed, the company’s holding in Jio Payments Bank Limited will increase to 77.25%, which is currently 76.98%.

Jio Financial Services Ltd said, “The investment is a related party transaction and is on an arm’s length basis. None of the Company’s Promoter, Promoter Group and group companies have any interest in the above investment. No governmental or regulatory approvals were required for the above investment.”

On March 28, 2024, the Jio Financial Services share price opened at ₹354.85, touching the day’s high at ₹357.75, as of 12:14 PM on the NSE.

About Jio Financial Services Ltd 

Jio Financial Services Ltd was originally incorporated as Reliance Strategic Investments Private Limited. It is a holding company and operates its financial services business through its consumer-facing subsidiaries, which include Jio Finance Limited, Jio Payment Solutions Limited and Jio Insurance Broking Limited and a joint venture, Jio Payments Bank Limited.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.