Jio Financial Services Ltd announced that its board of directors have approved the acquisition of 7.9 crore shares of Jio Payments Bank (JPBL) from State Bank of India (SBI) for Rs 104.54 crore. In a regulatory filing, the company said, “The Board of Directors of the Company, at its meeting held today, have approved acquisition of 7,90,80,000 equity shares of JPBL from SBI for an aggregate consideration of Rs 104.54 crore. Post this acquisition, JPBL will become a wholly owned subsidiary of the company.”
Jio Financial Services currently holds 82.17 per cent of the paid-up equity share capital of JPBL, a joint venture of the company and the SBI.
It further stated that the acquisition is subject to approval of Reserve Bank of India (RBI) and is expected to be completed within 45 days post receipt of RBI approval.
Earlier in January, Jio Financial Services had released its fiscal third quarter earnings with net profit at Rs 294.8 crore, marginally higher than Rs 293.8 crore recorded during the corresponding quarter of previous financial year. The company posted Q3 revenue from operations at Rs 438.4 crore, up 6 per cent. Jio Financial Services saw an increase in its assets under management (AUM), rising to Rs 4,199 crore. The payments bank also posted growth with its CASA (Current Account and Savings Account) customer base expanding by 25 per cent quarter-on-quarter to 1.89 million.
Shares of Jio Financial Services went up by 2.79 per cent at 3:15 pm to a trading price of Rs 206.55.