India’s Jio Financial Services has agreed to purchase the remaining stake in Jio Payments Bank (JPBL) from State Bank of India (SBI).
This acquisition involves a total of 7,90,80,000 equity shares for an aggregate consideration of Rs1.045bn ($11.97m).
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The board of directors of the company has approved the acquisition.
The move will result in JPBL becoming a wholly owned subsidiary of the company.
Currently, Jio Financial holds an 82.17% stake in JPBL, which was established as a joint venture between the company and SBI.
The acquisition is contingent upon the approval of the Reserve Bank of India (RBI) and is expected to be finalised within 45 days following the receipt of this approval.
This transaction is not considered a related party transaction, and none of the company’s promoters, promoter group, or other group companies have any interest in the acquisition, stated Jio Financial.
Jio Financial, which was spun off from Reliance Industries in 2023, has been focusing on expanding its operations.
It is planning a mutual fund venture with US based BlackRock and increased its stake in Jio Payments Bank with a Rs680m ($7.7m) investment in August 2024, reported Reuters.
In October 2024, JFSL announced that the upgraded JioFinance App is now available on the Google Play Store, Apple App Store, and MyJio.
Enhanced based on feedback from over six million users during its beta phase since May 2024, the app offers digital financial services, including loans on mutual funds, home loans with balance transfer options, and loans against property.
