Jio Financial climbs as board OKs raising Rs 15,825 Cr via preferential issue

Jio Financial Services gained 2.70% to Rs 328.85 after the company?s board approved a fundraise via a preferential issue of 50 crore warrants, aggregating up to Rs 15,825 crore.

Each warrant is priced at Rs 316.50 and will be convertible into one fully paid-up equity share of Rs 10 each at a premium of Rs 306.50. The conversion can take place in one or more tranches within 18 months from the date of allotment. Any unconverted warrants after the deadline will lapse, and the amount paid by the warrant holders will be forfeited.

The preferential issue is being made on a private placement basis to two promoter group companies, Sikka Ports & Terminals and Jamnagar Utilities and Power. Post-conversion, the promoter group's total stake could rise from 3.10% to 10.17%, reflecting a significant increase in promoter commitment.

Sikka Ports' holding could jump from 1.08% to 4.65%, while Jamnagar Utilities would rise from 2.02% to 5.52%, assuming full conversion.

Jio Financial Services is a Core Investment Company (CIC), registered with the Reserve Bank of India. JFSL is a new-age institution, which operates a full-stack financial services business through customer-facing entities, including Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank.

The company's consolidated net profit rose 3.83% to Rs 325 crore while total income jumped 48.09% to Rs 418 crore in Q1 June 2025 over Q1 June 2024. The pre-provisioning operating profit stood at Rs 366 crore, up 8%, while profit before tax rose 4.5% to Rs 419 crore during the period under review.

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