News

Published: November 22, 2023
Updated: November 22, 2023

Jio Financial Quashes Speculation on Bond Issuance Amidst Share Surge

Demerged Entity Clarification:

In a twist of market speculation, Jio Financial Services Ltd (JFS), the demerged entity of Reliance Industries Ltd, has refuted reports of any plans to raise funds through bond issuance or any other means. The company's shares witnessed a surge following earlier reports suggesting a substantial fundraising move.

Clarification Amidst Speculation:

Contrary to a Reuters report proposing a potential Rs 5,000-10,000 crore bond issuance by Jio Financial, the company issued a clarification, labelling the news as purely speculative. The clarification emphasized the company's commitment to disclosure obligations under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and agreements with stock exchanges.

Market Response: Share Surge and Recent Performance

Despite the speculative news, Jio Financial shares experienced a 2.02% rise, closing at Rs 219.85 on Tuesday. Over the last month, the stock has shown notable strength, with a 6.41% increase, reflecting investor confidence.

Strategic Transformation: NBFC to CIC Conversion

In an additional filing to the BSE, Jio Financial revealed its application for the conversion of the company from Non-Banking Financial Company (NBFC) to Core Investment Company (CIC). This move aligns with the regulatory requirements set by the Reserve Bank of India (RBI) during the approval process for changes in shareholding and control due to the demerger of the Financial Services business from Reliance Industries Limited.

Journey Since Listing: August Debut and Business Expansion

Jio Financial, having made its market debut in August, has been proactive in its strategic evolution. The company aims to position itself as a comprehensive financial services firm, offering an array of products, including home and auto loans.

Navigating Market Sentiments with Clarity:

The strategic move towards a CIC and the continued business expansion underline the company's dynamic approach in navigating the financial landscape. Investors should keenly watch the unfolding chapters of Jio Financial's journey in the financial services domain.