The shares of a Finance stock, specializing in providing a wide range of financial services, including digital payments, lending, asset management, insurance, and wealth management, jumped upto 5 percent upon approval of acquiring the remaining 17.83 percent stake from State Bank of India (SBI) for Rs. 104.54 Crores.
Price action
With a market capitalization of Rs. 1,37,196.09 crores on Wednesday, the shares of Jio Financial Services Limited jumped upto 4.8 percent making a high of Rs. 216.30 per share compared to its previous closing price of Rs. 206.35 per share.
What Happened
Jio Financial Services Limited, which offers a wide range of financial services, announced that its Board of Directors has approved the acquisition of 7,90,80,000 equity shares, representing a 17.83 percent stake in Jio Payments Bank Limited (JPBL), from the State Bank of India (SBI) for Rs. 104.54 crore.
Following this acquisition, JPBL will become a wholly-owned subsidiary of the company. The acquisition is subject to approval from the Reserve Bank of India (RBI) and is expected to be completed within 45 days.
About the company
Jio Financial Services Limited is a prominent financial services company that offers a wide range of solutions, including digital payments, lending, asset management, and insurance. It aims to drive financial inclusion and innovation by leveraging technology. As part of the Reliance Group, the company focuses on delivering customer-centric financial products to both individuals and businesses across India.
Competitors
Jio Financial Services has significant competition from major players like Bajaj Finserv, HDFC, and LIC Housing Finance, which dominate the financial services, insurance, and lending sectors. Currently, Jio Financial Services is trading at a P/E of 81.56, well above the industry average of 31.53.
Financials
The company’s total revenue rose by 8.34 percent from Rs. 414.33 crore to Rs. 448.89 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 293.82 crore to Rs. 294.78 crore during the same period.
Written by Sridhar J
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