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Jio Financial Services Aims to Increase Foreign Ownership to 49%

This banner image features a stylized portrait of Mukesh Ambani, a well-known Indian businessman, placed against a graphic backdrop with blue tones and geometric patterns. To the right, the logo of Reliance Jio—a globe encased in a grid pattern with the Jio logo on top—is prominently displayed, symbolizing the global reach and connectivity of the brand. The overall design merges elements of corporate branding with a modern, graphic style.
By
Anurag Trivedi

Jio Financial Services is actively seeking approval from its shareholders to raise foreign investment limits in its equity up to 49% through an e-voting process. This initiative is part of its strategy to transition into a Core Investment Company (CIC), which would enable funding through government-approved channels. The proposed transformation, initially approved by the board on December 27, 2023, would also allow Jio Financial to delve into asset management, financial product distribution, insurance, broking, and asset reconstruction.

In a recent communication to its shareholders, the fintech entity disclosed its application to the Reserve Bank of India, seeking to shift from a Non-Banking Financial Company (NBFC) to a CIC. This change would open the doors for foreign investments, including foreign portfolio investments, under government-approved routes, up to the mentioned 49% cap of its paid-up equity share capital.

Additionally, Jio Financial announced its financial outcomes for the fourth quarter of FY24, reporting a nearly 6% increase in consolidated net profit to INR 311 crore, up from INR 294 crore in the preceding quarter. The company's operating revenue during this period saw a slight rise to INR 418 crore from INR 414 crore in the third quarter of FY24.

The improvement in profits is largely attributed to increased earnings from associates and joint ventures and reduced tax expenses. Despite these advances, Jio Financial is still ramping up its operations, although it has already secured several agreements, including a noteworthy joint venture with US investment titan BlackRock in April 2024. This collaboration aims to introduce wealth management and broking services, following an earlier partnership to penetrate the Indian asset management sector with a $300 million initial investment.

Jio Financial Services made its debut on the stock exchanges in August 2023 after spinning off from Reliance Industries Ltd. The e-voting for the latest proposals will be open from May 24 to June 22, allowing shareholders to cast their votes on these strategic decisions.