Jio Financial Services Share Price Extended 2nd Day Rise Post Acquisition Announcement

Market Performance

Jio Financial Services, a company owned by Mukesh Ambani, saw a 4% increase in its share price on March 5, 2025. This gain marked the second consecutive day of positive performance following the announcement of acquiring the remaining stake from the State Bank of India of Jio Payments Bank plans.

Jio Payments Bank is about to be acquired fully by Jio Financial after acquiring the remaining 17.83% stake. Jio Financial already holds 82.17% stake in Jio Payments Bank

Main News

Jio Financial's Board of Directors has approved the acquisition of 7,90,80,000 equity shares of Jio Payments Bank Limited (JPBL) from SBI for a total consideration of ₹104.54 crore. However, the acquisition remains subject to approval from the Reserve Bank of India (RBI). Once approval is obtained, the deal is expected to be completed within 45 days.

This acquisition reflects Jio Financial's ongoing efforts to expand its operations since its separation from the larger Mukesh Ambani-led conglomerate in 2023. In addition to this acquisition, Jio Financial has been making strides in the financial services sector and is planning to launch a mutual fund business in collaboration with US-based BlackRock.

Stock Performance

The share price of Jio Financial Services rose by 4.60% to ₹215.90 during intraday trading, continuing the upward momentum from the previous day. The stock had opened at ₹207.25, up slightly from ₹206.35, its last closing price. This recent surge has contributed to an overall gain of over 7% in just two days.

However, despite the recent uptick, Jio Financial Services has faced challenges over the past year. The stock has significantly declined, losing 33% in the last month, 38% over the past three to six months, and 12% in the past month alone.

Company Details

Jio Financial Services, which spun off from the Reliance Group in 2023, is actively expanding its footprint in the financial sector. Beyond this acquisition of Jio Payments Bank, the company is working on diversifying its business operations, mainly focusing on the asset management sector through its planned mutual fund venture with BlackRock.

Summary

Jio Financial Services' recent stock price rise follows the announcement of its plan to acquire the remaining shares in Jio Payments Bank from SBI, strengthening its position in the financial services market. Despite recent volatility, including significant losses over the past year, the company remains focused on expanding its operations, with future ventures planned in the mutual fund sector alongside BlackRock.