Jio Financial seeks shareholders nod for foreign investment up to 49%; shares up 5%

Jio Financial Services, an arm of the oil-to-telecom conglomerate Reliance Industries Ltd (RIL), on Thursday informed the stock exchanges that it has sought shareholders' nod for foreign investment up to 49% in the company.

The company said it has launched a postal ballot notice, dated May 18, asking the eligible shareholders to vote on the proposal to allow "foreign investments (including foreign portfolio investments) in the equity share capital of the company up to 49% of the paid-up equity share capital".

The cut-off date, to determine shareholders who are eligible to vote on the proposal, was fixed as May 17, a regulatory filing stated. The e-voting facility will be available from May 24 to June 22, it added.

Jio Financial shares surge

Following the announcement, the shares of Jio Financial Services witnessed a spike. The scrip touched an intraday high of ₹376 apiece on the National Stock Exchange (NSE), up 5.1% from the previous day's close.

The stock, however, pared some of the gains in the next hour of trading. The shares were valued at ₹368 apiece at 2:13 pm, still up 2.94% as compared to the last closing price.

Year-to-date, Jio Financial Services has rallied by 47%. The company was listed on the bourses in July last year, after being demerged from the parent group RIL. It was listed at a share price of ₹262 apiece on July 20.