Jio Financial Services shares: JFS stock in focus as RBI okays conversion to CIC; key details

Jio Financial Services Ltd (JFS) shares are in focus on Friday after the demerged entity of Reliance Industries Ltd (RIL) said it has received approval from the Reserve Bank of India (RBI) for its conversion to core investment company (CIC) from non-banking financial company (NBFC) at present.  

As mandated by the RBI while granting its approval for change in the shareholding pattern and control of the company pursuant to the demerger of the financial services business from RIL into the company, JFS last year in November submitted the application for the conversion.

A core investment company, as per RBI, carries on the business of acquisition of shares and securities, has asset size of over Rs 100 crore and holds not less than 90 per cent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. Its investments in the equity shares in group companies constitutes not less than 60 per cent of its net assets, as per 

JFS is a holding company for operating a set of financial services businesses through its subsidiaries. In fiscal 2024, JFS was demerged from Reliance Industries. Mukesh Ambani is the promoter of JFS. The promoter group held 47.12 per cent stake in JFS as on March 31, 2024. The company will announce its June quarter results on July 15.

Through its subsidiaries, JFS will be involved in businesses such as retail and merchant lending (through JFL), payments bank operations, payments solutions and insurance broking. The NBFC recently entered into a joint venture with BlackRock to foray into the asset management business and sought in-principle approval from Sebi in relation to the same. 

Within retail lending, JFS intends to provide both secured and unsecured loans with focus towards the secured segment. On a consolidated basis, JFS had a sizeable networth of Rs 1,39,148 crore as on March 31, 2024. Liquidity was strong with liquid assets of about Rs 22,000 crore as on the same date, CRISIL recently said.