Shares of Jio Financial Services Ltd (JFS) rose over 3% to ₹330.10 in early trade on Wednesday after the company’s board approved a massive fundraise of ₹15,830 crore via a preferential issue of equity warrants to promoter group entities. The move is seen as a major capital infusion aimed at fueling the company’s ambitious long-term expansion in the financial services sector.
Warrant Issue Details
The company will issue 50 crore convertible warrants at a price of ₹316.50 per share, each warrant entitling the holder to subscribe to one equity share of ₹10 face value. These warrants will be allotted on a private placement basis to two key promoter group firms:
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Sikka Ports & Terminals Ltd
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Jamnagar Utilities and Power Pvt Ltd
The warrants are convertible within 18 months of allotment. If not converted within this window, they will lapse and be forfeited.
Promoter Shareholding Post-Issue
Upon full conversion:
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Sikka Ports & Terminals’ stake will rise from 1.08% to 4.65%
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Jamnagar Utilities and Power will increase its stake from 2.02% to 5.52%
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Combined promoter holding will increase from 3.10% to 10.17%
This boost in promoter shareholding signals strong internal confidence in the company’s future growth prospects.
Market Reaction
Jio Financial shares surged to ₹330.10, up ₹9.80 or 3.06%, making it one of the top gainers and most active stocks on the NSE by volume. The stock hit a day high of ₹331.55 and saw average trading volumes of nearly 19 million shares in early hours.
Why It Matters
This capital raise is a key development as JFS continues to expand its presence in the financial services space, especially in areas like consumer finance, lending, and insurance distribution. The infusion of funds from the promoter group is expected to strengthen its balance sheet and fuel operational growth.
