In a strategic move to expand its footprint in the financial sector, Jio Financial Services Limited (JFSL) has announced the acquisition of 7.9 crore shares of Jio Payments Bank Limited (JPBL) from State Bank of India (SBI) for ₹104.54 crore. This acquisition will make JPBL a wholly-owned subsidiary of JFSL, strengthening its position in the digital payments landscape.
The transaction, which the board of JFSL has approved, is awaiting approval from the Reserve Bank of India (RBI). Once regulatory approval is received, the acquisition is anticipated to be completed within 45 days. JFSL presently owns 82.17% of the paid-up equity share capital of JPBL, a joint venture between SBI and JFSL.
After the news broke, JFSL’s stock price jumped 2.65%, finishing at ₹206.25. Even this increase, the stock has fallen 36.07% in the last one year, indicating market fluctuation and investors’ sentiments. The company’s market capitalization is ₹1.31 lakh crore.
In a disclosure to the stock exchanges, JFSL said the acquisition is part of its strategy to strengthen its presence in the payments banking space. The acquisition is viewed as a move towards consolidating its financial services portfolio, which comprises investments, insurance broking, payment gateways, and the Jio Finance app launched in May 2024.
The Jio Finance app supporting UPI as well as other digital banking applications has found growing traction ever since its pilot operation. Furthermore, JFSL’s tie-up with international investment management company BlackRock Inc. to provide wealth management solutions further strengthened its footprint in the finance space.
As JFSL continues to expand its digital and financial services, acquiring JPBL’s remaining shares is expected to streamline its operations and enhance its customer base. The market is now keenly watching the RBI’s response, which will be a critical determinant for the timely completion of this acquisition.
