Jio Financial Services Limited (formerly Reliance Strategic Investments Limited) has increased its holding in Jio Payments Bank Limited (JPBL) by subscribing to 8.5 crore equity shares valued at ₹10 each, aggregating to ₹85 crore. This transaction was disclosed on March 27, 2025, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investment Details and Impact

The disclosure highlights that the investment was made to fund the business operations of JPBL. Before this investment, Jio Financial Services Limited (JFS) held 82.17% in JPBL, which has now increased to 85.04% following the acquisition of additional equity shares.

The subscription of these shares was executed at 1.07 p.m. on March 27, 2025. The transaction, being a related party transaction, was conducted on an arm’s length basis, ensuring compliance with regulatory standards.

Regulatory Approvals and Compliance

JFS clarified that the Reserve Bank of India (RBI) had granted approval for this investment. Additionally, no other governmental or regulatory approvals were required for completing the transaction.

It was explicitly mentioned that none of the Company’s promoters, promoter group, or group companies have any interest in this transaction.

Purpose Behind the Investment

The investment aims to strengthen JPBL’s financial position by supporting its business operations and growth objectives. With increased capital, JPBL is expected to further expand its digital banking services and consolidate its position in the highly competitive payments banking sector.

About Jio Payments Bank Limited

Jio Payments Bank Limited is a joint venture between Jio Financial Services and State Bank of India (SBI). Established with the objective of enhancing financial inclusion through digital innovation, JPBL has consistently focused on providing innovative digital payment solutions and banking services. The increased holding by JFS is expected to strengthen the strategic direction and operational efficiency of JPBL.

Financial Implications and Strategic Importance

The additional investment of ₹85 crore signals Jio Financial’s long-term commitment to the growth and development of JPBL. With a controlling stake of 85.04%, JFS is poised to have greater influence over the strategic and operational direction of the payments bank.

This investment aligns with JFS’s vision of leveraging digital technologies to enhance the penetration of financial services, particularly in underserved segments of the population. As JPBL continues to expand its services, the increased stake provides JFS with an opportunity to maximize shareholder value and strengthen its foothold in the fintech space.

Compliance with SEBI and Regulatory Guidelines

JFS has ensured that the transaction complies with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The disclosure was made to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) under the relevant regulatory framework.

As per the disclosure, the details of the investment were communicated to:

• BSE Limited (BSE) – Scrip Code: 543940

• National Stock Exchange of India Limited (NSE) – Trading Symbol: JIOFIN

Strategic Vision and Future Prospects

JFS’s investment in JPBL aligns with its broader strategy to expand its footprint in the digital payments and fintech ecosystem. As digital banking becomes more prominent, JPBL’s services are expected to benefit from the enhanced capital base, enabling it to develop innovative financial products and services.

The digital payments landscape in India has been growing rapidly, driven by government initiatives, increasing smartphone penetration, and a favorable regulatory environment. JFS aims to capitalize on this momentum by strengthening its stake in JPBL, ensuring that the company remains well-positioned to capture market opportunities and drive sustainable growth.

Key Takeaways

1. Increased Stake: JFS’s holding in JPBL has increased from 82.17% to 85.04% after subscribing to 8.5 crore equity shares for ₹85 crore.

2. Regulatory Clearance: The Reserve Bank of India (RBI) granted approval for the investment, ensuring compliance with necessary regulations.

3. Strategic Objective: The investment is expected to support JPBL’s business operations and strengthen its market position.

Disclosure and Compliance Summary

Jio Financial Services has fulfilled its obligation under Regulation 30 of the SEBI (LODR) Regulations, 2015 by making this disclosure. This information is provided for the knowledge of stakeholders and is intended to maintain transparency and compliance with regulatory requirements.

Conclusion

The ₹85 crore investment by JFS in JPBL marks a significant step in consolidating its control over the payments bank and bolstering its financial position. With a majority stake of 85.04%, JFS is well-positioned to drive the strategic direction and operational growth of JPBL, reinforcing its position as a key player in India’s rapidly evolving digital payments landscape.

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