Jio Financial Services gets nod to increase foreign investment limit
What's the story
Jio Financial Services has received authorization from the Department of Economic Affairs, Ministry of Finance, to raise its foreign investment limits. The approval allows for a rise of up to 49% of the total equity on a fully diluted basis. This development follows the company's request in May 2024 for shareholder approval to facilitate foreign investments, including those from Foreign Portfolio Investors (FPIs), through equity.
Financials
Firm reports profit growth
For the quarter ending March 2024, Jio Financial Services reported a sequential rise in consolidated net profit of 6%, rising to ₹311 crore from ₹294 crore in the December quarter. However, the firm's consolidated revenue from operations remained stable at ₹418 crore, showing no significant change from the previous quarter's figure of ₹414 crore.
Strategic partnership
Partnership with BlackRock
In April, JFS announced a strategic alliance with BlackRock, to launch a wealth management and broking business. The joint venture is aimed at strengthening its relationship with BlackRock and revolutionizing India's asset management industry. The goal of this partnership is to offer digital-first investment solutions and expand access for Indian investors.
Stock performance
JFS's market performance
JFS went public in August last year with a market capitalization exceeding ₹1.5 lakh crore. However, the company's shares experienced a slight dip on Friday, closing 0.77% lower at ₹327.05 each.