Jio Financial Services saw a significant boost in its stock price, rising by almost 5 percent on Wednesday. The company’s board approved the acquisition of 7.9 crore shares of Jio Payments Bank Ltd (JPBL) from State Bank of India (SBI) for ₹104.54 crore.
Following the transaction, JPBL will become a wholly-owned subsidiary of Jio Financial Services. The joint venture between Jio Financial Services (formerly known as Reliance Strategic Investments Ltd) and SBI was established to form JPBL.
The acquisition is conditional upon approval from the Reserve Bank of India (RBI) and is anticipated to be finalized within 45 days post receipt of RBI approval. Jio Financial Services shares surged by 5.17 percent to reach ₹217.06 by 11:26 am, with the market capitalization hitting ₹1.37 lakh crore. The stock had recently experienced a 52-week low due to selling pressure and market volatility.
It is expected that by the end of March, Jio Financial Services will be included in the Nifty 50 index.
In the meantime, SBI shares also saw a rise of 1.08 percent to ₹723.80 on the NSE by 11:33 am.
