Jio Financial Services Limited has informed the Exchange about Preferential issue
JIOFIN · price
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The board of Jio Financial Services approved raising up to Rs. 15,825 crore by issuing up to 50 crore warrants to two promoter group companies — Sikka Ports & Terminals Limited and Jamnagar Utilities and Power Private Limited. Each warrant is priced at Rs. 316.50 (a premium of Rs. 306.50 over the Rs. 10 face value) and can be converted into one equity share within 18 months. After full conversion, the combined promoter group holding will rise from 3.10% to 10.17% of the company. The issue is subject to shareholder and regulatory approvals.
This is a significant capital infusion from the promoter group, strengthening the company's balance sheet and signaling strong promoter confidence. However, the eventual conversion will dilute existing public shareholders' stake, and any failure to convert within 18 months will result in forfeiture of the warrant amount.