Through e-voting, Jio Financial also wants shareholders’ approval to incorporate entities for asset management, financial product distribution, insurance, broking, and asset reconstruction
The fintech company said in a postal ballot notice to shareholders that it has also submitted an application to the Reserve Bank of India to convert into a core investment company from an NBFC
Its board had on December 27, 2023, approved foreign investments (including foreign portfolio investments) of up to 49% of its paid-up equity share capital effective upon its conversion into a CIC
Fintech company Jio Financial Services has sought shareholders’ approval to raise the limit of foreign investment in its equity capital up to 49%. JFS is also seeking the shareholder nod for conversion into a core investment company, which would allow it to raise funds via the government approval route.
Through e-voting, the company also wants shareholders’ approval to incorporate entities for asset management, financial product distribution, insurance, broking, and asset reconstruction, it said in a stock exchange filing.
The e-voting facility will be available from May 24 to June 22.
Jio Financial said it has also submitted an application to the Reserve Bank of India to convert into a core investment company (CIC) from an NBFC. Foreign investment in a CIC is permitted under the government approval route.
The JFS board had, on December 27, 2023, approved foreign investments (including foreign portfolio investments) of up to 49% of its paid-up equity share capital effective upon its conversion into a CIC.
Jio Financial Services posted almost a 6% rise in its consolidated net profit to INR 311 Cr in Q4 of FY24 from INR 294 Cr reported in the previous December quarter. The company’s operating revenue saw a marginal increase to INR 418 Cr in the reported quarter compared from INR 414 Cr in Q3 FY24.
JFS’ increased profit was largely driven by an increase in share of profit of associates and joint ventures and lower tax expenses. The company is yet to launch operations in a major way though it has signed deals and made announcements about its various verticals.
In April 2024, Jio Financial signed a joint venture agreement with the US-based investment giant BlackRock to launch wealth management and broking businesses. It is pertinent to note that last year the companies formed a JV to enter the Indian asset management space with an initial investment of $300 Mn.
JFS listed on the bourses in August 2023 after demerging from Reliance Industries Ltd.
