Prime Highlights
- Jio Financial Services invests nearly ₹64 crore in its leasing joint venture through a rights issue.
- Funding aimed at strengthening operations of Reliance International Leasing IFSC in the global finance hub.
Key Facts
- Investment made via subsidiary Jio Leasing Services in a 50:50 JV with Reliance Industries.
- The deal is a related-party transaction but conducted at arm’s length with no regulatory approvals needed.
Background
Jio Financial Services has invested additional funds into its leasing operations, which it manages in partnership with Reliance Industries, to demonstrate its continued efforts for expansion in financial services.
The company revealed in its official filing that its fully owned unit, Jio Leasing Services Limited, put in around ₹63.94 crore into Reliance International Leasing IFSC through a rights issue of preference shares.
Under the deal, JLSL bought over 6.39 crore preference shares at ₹10 each, categorised as 8.1% Cumulative Optionally Convertible Preference Shares. The money raised will go towards running the day-to-day operations of the joint venture, which works out of India’s International Financial Services Centre.
Reliance International Leasing IFSC is a 50-50 joint venture between Jio Leasing Services and Reliance Strategic Business Ventures, a subsidiary of Reliance Industries. Both sides hold an equal stake, giving each an even say in how the leasing business is run.
With this recent infusion, total investment by Jio Leasing Services in joint ventures since the last disclosure has risen to around 82.8 crore INR.
According to the company, the transaction is a related-party deal, but is carried out at arm’s length. Jio Financial Services confirmed that no regulatory approvals were required for this investment.
The move is yet another signal of Jio Financial’s interest in leasing and structured finance in an endeavour to create new revenue sources in the ever-evolving financial landscape of India.