Jio Financial Services Ltd's share price rose for the second consecutive trading session on March 6, bouncing back 11.95 per cent from its record low in just two sessions. Notably, the stock hit its all-time low on March 3 as it traded at Rs 198.65 apiece on the NSE. On March 6, the stock continued its gaining spree as it rose 2 per cent to hit an intraday high of Rs 222.39 apiece on the NSE in early trade.
Shares of Jio Financial Services extended gains for the second straight day after the company announced that it plans to increase its holding in Jio Payments Bank. Jio Payments Bank is a joint venture between Jio Financial Services and the State Bank of India (SBI) and the financial services company plans to acquire the public sector lender’s stake to make Jio Payments Bank its wholly owned subsidiary.
Jio Financial Services informed the exchanges on March 4 that the company currently holds 82.17 per cent of the paid-up equity share capital of Jio Payments Bank Limited (JPBL). The Reliance group company added that its Board of Directors have approved the acquisition of over 7.9 lakh crore equity shares of JPBL from the State Bank of India for an aggregate consideration of Rs.104.54 crore.
The State Bank of India is likely to have sold 17.8 per cent of its stake in the payments bank for Rs 104.54 crore. The public sector lender said it is selling its stake in Jio Payments Bank at Rs 13.22 apiece.
The financial services provider added that the acquisition is subject to approval from the Reserve Bank of India (RBI). Jio Financial Services added that the acquisition is likely to be completed within 45 days following the receipt of RBI’s approval. Jio Financial Services also clarified that the acquisition is not a related party transaction and none of its promoter or promoter group or other group companies have any interest in the above acquisition.
Despite the recent rally seen in the stock, the price of Jio Financial Services shares has fallen consistently. The stock’s price has fallen 31.92 per cent in a year on the NSE and has slipped 26.4 per cent on a Year-To-Date (YTD) basis. In six months the price of the stock has declined 36.23 per cent and in a month the stock has fallen 6.93 per cent.
At the time of writing, shares of Jio Financial Services traded at Rs 220.86 apiece on the NSE up by 1.73 per cent.
