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Ambani to invest nearly Rs 16,000 crore in Jio Financial

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Ambani to invest nearly Rs 16,000 crore in Jio Financial

MUMBAI: Mukesh Ambani’s promoter group firms will invest Rs 15,825 crore in Jio Financial Services through a preferential allotment of up to 50 crore warrants, each priced at Rs 316.5. The capital infusion is expected to support further product rollouts in lending and insurance, expand digital payments, and build its broking and mutual fund operations.The offer is at a slight discount to Jio Financial’s prevailing share price of around Rs 320. The board has cleared the private placement to Sikka Ports Terminals and Jamnagar Utilities and Power, both part of the promoter group and each set to receive 25 crore warrants, which can be converted into equity shares within 18 months.The capital infusion comes weeks after the company entered into a binding agreement with Germany’s Allianz to form a 50:50 reinsurance joint venture and also explore JVs in life and non-life. All three ventures require substantial capital.The fundraising follows the July 2023 demerger of Jio Finance from RIL and its subsequent listing on exchanges in Aug 2023 at Rs 262. Since then, the firm has broadened its presence across multiple segments of financial services.





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