Jio Financial Services to raise ₹10,000 crore via maiden bond issue
Jio Financial Services is expected to cross a major milestone as it is in the early stages of talks with bankers to secure its inaugural bond issuance. The financial venture is expected to raise ₹5,000 to ₹10,000 crore through its maiden bond issue.
News agency Reuters reported that the maiden bond issuance of Jio Financial Services could be during January-March of 2024. The fundraiser is expected to take place through five-year bonds, the publication reported.
The Mukesh Amabi’s venture also opened higher on the National Stock Exchange (NSE) on November 21 after reports of its maiden bond issue surfaced in the media. The stock closed at ₹215.5 on the NSE on November 20, but at 9:20am today, the stock was trading at ₹217.60.
Reuters further reported that Jio Financial Services was in early talks with bankers, citing four sources, and that the firm “may tap the market in the last quarter of the financial year.” However, the company is yet to respond to the report.
JFS was first listed on the National Stock Exchange and the Bombay Stock Exchange in August 2023, and the stock was listed at ₹262 and ₹265 respectively. The stock price suffered a gradual decline over the last three months, despite a net profit of ₹668 crore in Q2FY24.
Jio Financial Services-RIL demerger
Jio Financial Services decided to establish itself as a full-service financial sector player, deciding to demerge from Reliance Industries Limited. After its demerger, JFS announced a 50:50 joint venture with BlackRock for an asset management business.
As per the terms of the partnership, both the parties will be making an initial investment of USD 150 million. The firm also got approval from the Reserve Bank of India (RBI) to appoint Isha Ambani, Anshuman Thakur and Hitesh Sethia to the board of directors of JFS.