Jio Financial Services to raise ₹15,825 crore by issuing up to 50 crore warrants via preferential issue

Jio Financial Services, the core investment company of Reliance Industries , said on Wednesday that it plans to raise ₹15,825 crore by issuing up to 50 crore warrants, with each warrant to be sold for ₹316.50 in cash—with a face value of ₹10—subject to shareholder and regulatory approval. The warrants will be convertible, and each warrant can be converted into one fully paid equity share of the company in the future.

The fundraising will be done via a preferential issue, and the warrants will be issued to two selected members of the company’s promoter group. These include Sikka Ports and Terminals Limited, which have a pre-preferential issue holding of 6.85 crore shares, representing 1.08% holding, and Jamnagar Utilities and Power Private Limited, 12.85 crore shares, representing 2.02% holding.

Post-preferential issue, Sikka Ports and Terminals will have 31.85 crore shares, representing 4.65% holding, and Jamnagar Utilities and Power will have 37.84 crore shares, representing 5.52% holding. The promoter group can convert these warrants into equity shares at any time within 18 months from the allotment date.

Reporting its first quarter results, Jio Financial Services posted a net profit of ₹325 crore, a 4% increase from the year-ago period. Revenue, on the other hand, jumped 46.6% year-on-year to ₹612.46 crore. As of June 30, JioBlackRock Asset Management’s AUM crossed ₹17,800 crore, while Jio Credit Limited (JCL) reported AUM of ₹11,665 crore, up from ₹217 crore in the first quarter of FY25. 

During the quarter, JioBlackRock Asset Management received approval to commence operations in May and launched its first New Fund Offer (NFO) for three debt funds on June 30. The NFO attracted over ₹17,800 crore within three days, placing it among India’s top 15 fund houses by debt AUM, said JFSL, adding that “over 90 institutional investors and 67,000 retail investors participated”.

Last month, the capital markets regulator, the Securities Exchange Board of India (Sebi), allowed Jio BlackRock Broking to act as a stockbroker and clearing member. In May, Jio Financial forayed into digital loan against securities, allowing its customers to leverage their investments, such as shares and mutual funds, to avail loans at competitive interest rates. It provides diverse lending solutions, including home loans, loans against property, and corporate financing, all conveniently accessible via the JioFinance app.