Ambanis to infuse Rs 16,000 Cr in Jio Financial Services to take on rivals

In a bid to strengthen the balance sheet, billionaire Mukesh Ambani and his promoter group will infuse Rs 15,825 crore in Jio Financial Services, which makes them hold over 51% stake in the financial services firm.

The decision to this effect was taken in the board meeting on Wednesday through preferential issue of convertible warrants to members of the promoter group.

Jio Financial promoters, including the Ambani family and different group holding entities, together own 47.12% of the company.

Post preferential issuance, promoter group holding would go up to 54.19%.

The board in its meeting on Wednesday approved raising of funds through issuance of up to 50 crore warrants for cash at a price of Rs 316.50 per unit.

Each warrant is convertible into one fully paid-up equity share of the company of face value of Rs 10 each at a premium of Rs 306.50 each, aggregating up to Rs 15,825 crore, by way of preferential issue on a private placement basis to the two promoter entities, it said.

Post issue, Sikka Ports & Terminals Ltd holding in the company would increase from 1.08% to 4.65% while Jamnagar Utilities and Power Private Ltd holding would more than double from 2.02% to 5.52%, it said.

Jio Financial Services Ltd (JFSL) reported a 4% increase in consolidated net profit to Rs 325 crore in the first quarter ended June 2025, as against Rs 313 crore in the same quarter a year ago.

The company's total income rose to Rs 619 crore as against Rs 418 crore in the June quarter of the previous year.

During the period, interest income doubled to Rs 363 crore as against Rs 162 crore in the same quarter a year ago. Total expenses increased significantly to Rs 261 crore from Rs 79 crore in the same quarter of last year.

JFSL, in the quarter, acquired 7.9 crore equity shares of Jio Payments Bank Limited (JPBL) from State Bank of India, representing 14.96% of equity share capital of JPBL, for Rs 104.54 crore.

Consequently, JPBL has become a wholly-owned subsidiary effective from June 18 2025. Exceptional item represents the excess of fair value gain on remeasurement of investment in JPBL of Rs 439.16 crore over the goodwill of Rs 410.59 crore relating to this acquisition, it said.

Jio Financial Services, carved out from Reliance Industries Ltd, is engaged in the business of investing and financing, insurance broking, payment bank and payment aggregator and payment gateway services.