Jio Financial Approves Rs.15,825 Cr Fundraise via Preferential Warrants to Promoters

In a significant financial move, Jio Financial Services (JFSL) — a Nifty 50 company — has announced a Rs.15,825 crore capital raise through a preferential issue of warrants to its promoter group entities. The company’s board approved the proposal to issue 50 crore warrants at Rs.316.50 each, including a face value of Rs.10 and a premium of Rs.306.50.

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The warrants will be allotted to Sikka Ports & Terminals Ltd and Jamnagar Utilities and Power Pvt Ltd, which currently hold 4.65% and 5.52% stakes in JFSL, respectively. These warrants, issued on a private placement basis, can be converted into equity shares within 18 months from the date of allotment. Unconverted warrants will lapse, and the funds paid will be forfeited. The issuance is subject to shareholder approval and regulatory clearance.

Strong Q1 Earnings and Future Plans

JFSL reported a net profit of Rs.325 crore for the quarter ending June 2025 — a 4% increase from Rs.312.63 crore in the same period last year. The company also posted a 46.6% year-on-year revenue growth, clocking Rs.612.46 crore in revenue, up from Rs.417.82 crore.

In addition, JFSL’s joint venture with BlackRock — Jio BlackRock — recently secured SEBI approval to launch four passive investment products. These include index funds based on Nifty Midcap 150, Nifty Next 50, Nifty Smallcap 250, and Nifty 8–13 year G-Sec index, underlining Jio's ambition in the asset management space.

The news sent Jio Financial’s shares soaring over 3%, making it the lone gainer among Nifty 50 stocks at market open, despite broader market weakness. The stock has also gained 23% over the past three months, reflecting strong investor confidence.

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