Jio Financial Services Ltd Sunday said it has received approval from the Department of Economic Affairs to increase its aggregate limit of foreign investment (including FPIs) to 49% of the paid-up equity share capital on fully diluted basis.
Foreign investors currently hold 17.55% stake in the company out of the close to 53% public float of shares, exchange data showed.
Jio, the non-banking company of Reliance Industries Ltd, was demerged from its parent in July 2023.
First quarter results released this year showed that its consolidated net profit fell 6% year-on-year to Rs 313 crore in the quarter ended June from Rs 332 core a year ago, mainly due to a fall in interest income and amidst an uptick in operating expenses.
Interest income fell 20% to Rs 162 crore in June from Rs 202 crore a year ago, while expenses increased to Rs 79 crore from Rs 54 crore a year ago, mainly as staff expenses increased more than three times to Rs 39 crore in June 2024.
In a presentation to investors accompanying the first quarter results, Jio Financial said it had launched loans against mutual funds and auto and two-wheeler digital insurance in July. The company has a tie up with 31 insurance companies.
The company also launched its ship leasing business by leasing its first ship under Reliance International Leasing IFSC Ltd (RILIL) in a joint venture with group company Reliance Strategic Business Ventures Ltd based in GIFT city, Gujarat.
The company will also finance solar panels and IT equipment and has received approval to expand its business correspondents (BCs) network to 16,000 outlets. The company said its asset management joint venture with BlackRock is progressing with infrastructure and tech platforms in advanced phases of development.
