Two promoter entities – Sikka Ports & Terminals and Jamnagar Utilities and Power Pvt – will be issued warrants that must be converted before 18 months from the issue of these securities, Jio Financial said in customary exchange filings.
The bulk of the new capital could be used for investments in both the new insurance and lending ventures, people familiar with the preferential issue said.
“Investment in insurance is a major part of Jio’s growth, and these funds will help in that goal, especially in the initial years when the business requires more capital,” said a person aware of the firm’s plans.
To be sure, Jio has already tied up with BlackRock to offer mutual funds locally, helping the world’s biggest asset manager to return to the Indian market after a seven-year gap. At nearly $24 billion, Jio Financial has the third-highest market value among consumer-facing non-bank lenders – behind Bajaj Finance and Bajaj Finserv.
Agencies Expansion Mode
The company’s board, at a meeting Wednesday, approved the issuance of up to half a billion warrants at Rs 316.50 apiece, translating into a discount of 1% to the closing price of Rs 320 per share on Wednesday.
Each warrant will be convertible into one fully paid-up equity share of the company, Jio Financial said.
“Warrants are convertible into fully paid-up equity shares of the company, in one or more tranches, at any time on or before the expiry of 18 (eighteen) months from the date of allotment and the unconverted warrants shall lapse, and the amount paid by the warrant holder on such warrants shall stand forfeited,” the company said.
Sikka Ports and Jamnagar together own 3.10% in the company currently, and that holding will increase to 10.17% of the expanded equity base after the preferential issue.
Growth capital
The company had a capital adequacy of 38.2% at the end of June 2025, more than double the 15% mandated by the Reserve Bank of India (RBI). But the company is in an expansion mode and needs funds to grow its business in a market dominated by entrenched names.
Earlier this month, Jio Financial said it had entered into an agreement with Germany’s Allianz Group to form a 50:50 domestic reinsurance joint venture in India. The two companies have also entered into a non-binding agreement for setting up equally owned joint ventures for both general and life insurance businesses in India.
Meanwhile, Jio BlackRock Asset Management, the mutual fund arm of Jio, commenced operations, launching its maiden new fund offer (NFO) for three cash/debt funds last quarter. The three funds attracted a total of ₹17,800 crore.
The other entities of the JioBlackRock JV – JioBlackRock Investment Advisers and JioBlackRock Broking – also received regulatory approvals to commence wealth management and securities broking operations, respectively, during the June quarter. The company had reported a 4% on-year growth in net profit in the June quarter on rising interest income. Profit increased to ₹325 crore, from ₹313 crore a year ago, mainly due to a doubling in interest income.
Jio Credit‘s (JCL) total assets under management (AUM) stood at ₹11,665 crore at the end of June 2025, up from ₹217 crore a year ago. The NBFC arm did not reveal the size of its loan book.
