Jio Financial Services

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Jio Financial Services Limited
FormerlyReliance Strategic Investments Private Limited (1999–2002)
Reliance Strategic Investments Limited (2002–2023)
Company type Public
ISIN INE758E01017
Founded22 July 1999;25 years ago (1999-07-22)
Founder Mukesh Ambani
Headquarters Mumbai, Maharashtra
Area served
India
Key people
Owners Ambani family (47.12%) [1]
Subsidiaries Jio Finance
Jio Insurance Broking
Jio Payment Solutions
Jio Leasing Services [2]
Jio Payments Bank (77%)
Website www.jfs.in

Jio Financial Services Ltd (JFSL) is an Indian financial services company, based in Mumbai. Originally a subsidiary of Reliance Industries (RIL), it was demerged as an independent entity and listed on the Indian stock exchanges in August 2023. [3] The company provides financial services, including payment services and insurance broking. [4] [5] Its subsidiary Jio Finance holds an NBFC license from the RBI. Another subsidiary, Jio Payments Bank, is also a payments bank registered in India.

Contents

History

Jio Financial Services was initially a financial services subsidiary of Reliance Industries. In July 2023, it was spun-off via a demerger, [3] with shareholders of Reliance Industries receiving one equity share of Jio Financial Services for every share they held in Reliance. [6] Reliance Industries transferred Rs 15,500 crore of cash and liquid investments to Jio Financial Services as part of the demerger scheme. This gave Jio Financial Services a liquid asset base of Rs 20,700 crore. [7]

JFSL was listed on the stock exchanges on August 21, 2023. Following the demerger and listing, JFSL was briefly a part of Nifty 50, BSE SENSEX and FTSE indices, but was removed from these indices over the following weeks as it did not meet their inclusion criteria. [8] [9] [10]

In July 2023, JFSL entered the asset management company (AMC) business, by forming a 50:50 joint venture with BlackRock called Jio BlackRock. [11] In April 2024, JFSL and BlackRock announced a partnership in wealth management and broking business. [12]

In May 2024, JFSL launched JioFinance, an app with digital payments, loans and insurance offerings. [13]

Reliance Jio, valued over $100 billion, plans India’s biggest IPO in 2025, according to sources on November 4, 2024. [14]

Controversies

In 2024, Jio Financial Services established a subsidiary called Jio Leasing Services Ltd, an unrelated leasing services business. [15] The subsidiary signed a $4.4 billion deal with another promoter-owned company, Reliance Retail for leasing routers. [16] Some commentators saw this deal as a way to prop up the revenue of Reliance Retail. [17]

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References

  1. ↑ "Jio Financial Services shares: JFS arm gets CARE's stable rating on bank facilities". Business Today. 1 July 2024. Retrieved 27 September 2024.
  2. ↑ Kayastha, Anshika (15 July 2024). "After loans against MFs, Jio Financial eyes LAP, loans against securities". Mint. Retrieved 27 September 2024.
  3. 1 2 Gohel, Ankit (August 18, 2023). "Jio Financial Services to be listed on stock exchanges on August 21". mint.
  4. ↑ "Banking & Financials: Jio Financial Services: Decoding the unknown". indiainfoline.com.
  5. ↑ "Jio Financial Services to provide simple, affordable solutions: Mukesh Ambani". Business Today. August 6, 2023.
  6. ↑ Jauhari, Ujjval (2023-07-20). "Reliance demerger: Jio Financial Services valued at ₹261.85". mint. Archived from the original on 2023-08-23. Retrieved 2024-02-16.
  7. ↑ "Reliance Industries shifts Rs 15,500 crore to Jio Financial Services". July 24, 2023.
  8. ↑ "Jio Financial Services to be removed from BSE Indices from September 1". Moneycontrol. August 31, 2023. Archived from the original on 2024-02-16. Retrieved 2024-02-17.
  9. ↑ Livemint (2023-08-24). "Why Jio Financial Services shares are hitting lower circuit everyday - Explained". mint. Archived from the original on 2023-08-26. Retrieved 2024-02-16.
  10. ↑ "The index fund attack on Jio Financial Services is over. Almost". Finshots. 2023-09-04. Archived from the original on 2023-10-02. Retrieved 2024-02-16.
  11. ↑ Narayanan, KS Badri (August 4, 2023). "Interesting times ahead for AMC business with the entry of Jio BlackRock". BusinessLine.
  12. ↑ Singh, Manish (15 April 2024). "Jio Financial, BlackRock to tap India's wealth management market". TechCrunch. Retrieved 27 September 2024.
  13. ↑ Singh, Manish (2024-05-30). "Ambani fires opening salvo in Indian fintech race with JioFinance". TechCrunch. Retrieved 2024-06-01.
  14. ↑ "Ambani's Reliance Jio IPO set for 2025; retail debut much later, sources say". Reuters. 2024-11-04. Retrieved 2024-11-29.
  15. ↑ "Jio Financial Service to enter equipment leasing segment". India Infoline. Retrieved 27 June 2024.
  16. ↑ "Jio Financial Services arm plans Rs 36K crore deal with Reliance Retail". Business Standard. Retrieved 27 June 2024.
  17. ↑ "Jio Financial wants to lend routers so that Reliance Retail's revenue goes up". Boring Money. Retrieved 27 June 2024.
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