Jio Financial Services Launches New Subsidiary for Financial Products DistributionJio Financial Services Launches New Subsidiary for Financial Products Distribution

Shares of Jio Financial Services Ltd rose by over 1.6% in early trading on Friday, August 16, following the announcement of a new subsidiary aimed at distributing financial products. This subsidiary, based in Mumbai, will offer a diverse range of financial services. 

Jio Financial Services will make an initial investment of ₹1 lakh to subscribe to 10,000 equity shares, each with a face value of ₹10. The company received the certificate of incorporation from the Ministry of Corporate Affairs on August 15.

Jio Financial Services shares opened higher at ₹324 per share on the NSE, reaching an intraday high of ₹325.5. The company also recently announced that its first annual general meeting (AGM) will be held on August 30, 2024, through Video Conferencing (VC) and other Audio-Visual Means (OAVM) to ensure accessibility for all participants.

For Q1FY25, Jio Financial Services reported a consolidated net profit of ₹313 crore, marking a 5.7% decline from ₹332 crore in the same period the previous year. The company’s total revenue saw a slight increase of 0.97%, reaching ₹418 crore, while the total interest earned dropped by 20% year-over-year.

In July, Jio Financial Services received approval from the Reserve Bank of India (RBI) to transition from a non-banking financial company (NBFC) to a core investment company. By 1:15 pm, the company’s shares were trading flat at ₹320.10 on the NSE.