Jio Financial, part of Reliance Industries, is seeking approval from shareholders to allow up to 49% foreign equity investments. This proposal aligns with their strategic growth initiatives and opens the door to substantial foreign capital.
The shareholder voting via e-voting is scheduled from May 24 to June 22. Jio Financial holds a majority public share of 52.88%, while the promoters possess 47.12%. This move to increase foreign investment underscores their commitment to global expansion.
Foreign investors currently own 19.45% of Jio Financial, reflecting robust international interest. The company’s transition to a core investment company (CIC) will further attract foreign portfolio investments, adhering to stringent RBI guidelines for CICs.
Under the Foreign Exchange Management Rules, achieving a 49% foreign investment cap requires a special resolution, needing at least 75% shareholder approval. This step ensures compliance and secures broader investment horizons for Jio Financial.
Jio Financial’s stock on the BSE recently surged by 5.2% during intraday trading, closing at ₹367.85, a 2.9% increase from the previous day. Their recent financial performance showed a sequential profit growth of 6%, with a dramatic annual increase to ₹1,605 crore.
