Jio Financial Services Share Price Surged 10% Post Jio Payments Bank Acquisition News

Market Performance

Jio Financial Services share price has shown a positive trend recently, recording a notable increase of over 10% in the past three sessions. This rally has helped the stock recover some of its losses from earlier in the year.

Despite this recent uptick, the share price has seen a considerable drop over the past month, with a drop of more than 11%. The stock has also seen a reduction of 27% on a year-to-date basis. Looking further back, the stock has fallen 34% over the last six months and 32% over the past year.

Main News

Jio Financial Services' stock price rose over 2% on Thursday, continuing its upward momentum for the third consecutive day. On March 6, the stock reached a high of ₹222.35 per share on the Bombay Stock Exchange (BSE). The volume of shares traded during this period was approximately one crore, a noticeable reduction compared to the four crore shares traded in the previous session.

This positive movement in the stock price followed the announcement that Jio Financial Services had made a significant decision regarding its stake in Jio Payments Bank. The company revealed plans to acquire the remaining shares of Jio Payments Bank (JPBL) from its joint venture partner, the State Bank of India (SBI).

Jio Financial currently holds an 82.17% stake in Jio Payments Bank, and its board approved the acquisition of the remaining 7,90,80,000 equity shares from SBI for ₹104.54 crore. Once the deal is completed, Jio Payments Bank will become a wholly owned subsidiary of Jio Financial Services. The acquisition is still pending approval from the Reserve Bank of India (RBI), and the company expects the transaction to conclude within 45 days after receiving RBI approval.

Company Details

Jio Financial Services, part of Mukesh Ambani's Reliance Industries, has made notable strides recently, particularly with its stake in Jio Payments Bank. This acquisition marks a significant move in the company's expansion strategy. Completing the acquisition will consolidate Jio Financial's control over Jio Payments Bank, further strengthening its position in the financial services sector.

The company has been trading under pressure for a while, with its stock experiencing multiple fluctuations. However, the recent rally has sparked interest, especially in light of its plans to integrate Jio Payments Bank fully into its operations.

Summary

Jio Financial Services has faced a rough period in the market over the past year but has recently seen a recovery in stock price, gaining over 10% in just three sessions. The primary driver of this upward trend is the company's announcement regarding its acquisition of the remaining shares of Jio Payments Bank. While the stock has faced significant declines over the past several months, this strategic move could be pivotal in shaping the company's future direction.

The deal, pending regulatory approval, could consolidate Jio Financial's interests in the banking sector, potentially impacting its stock performance in the near term. Investors will be watching closely for the completion of this acquisition and its effects on the company's financial standing.