Jio Financial Services Share Price in Focus as Bank of America to Invest Up to Rs 18,268 Crore in Jio Credit; Stake to Reach 49.9%

On Thursday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling 98.45 points, or 0.40 per cent, to 24,337.50. Amid the market movement, Jio Financial Services share price rose 1.39 per cent to Rs 259.60 after the company announced that Bank of America Corporation will invest up to Rs 18,268.22 crore in its wholly owned NBFC subsidiary, Jio Credit Limited. The proposed transaction will be carried out through a preferential issue of equity shares and warrants and is subject to applicable statutory and regulatory approvals.

Bank of America to Invest Up to Rs 18,268 Crore

Jio Financial Services and Bank of America have entered into a definitive agreement under which NB Holdings Corporation, a wholly owned subsidiary of Bank of America Corporation, will invest up to Rs 18,268.22 crore in Jio Credit. The agreements, comprising a Share Subscription Agreement and a Shareholders' Agreement, were executed on August 12, 2026.

The proposed investment includes up to 4,29,29,760 equity shares of Jio Credit, representing 26.50 per cent of the post-issue paid-up equity share capital, for an aggregate consideration of up to Rs 6,612.90 crore. In addition, Bank of America will subscribe to up to 7,56,64,248 warrants for an aggregate consideration of up to Rs 11,655.32 crore. Each warrant will be convertible into one fully paid-up equity share within 18 months from the date of allotment.

Following the conversion of the warrants, Bank of America will hold up to 49.90 per cent of the paid-up equity share capital of Jio Credit. The transaction is not classified as a related party transaction, and the company stated that none of its promoters, promoter group or group companies have any interest in the transaction.

Jio Credit's AUM Crosses Rs 30,000 Crore

Jio Credit Limited, formerly known as Jio Finance Limited, is the wholly owned NBFC subsidiary of Jio Financial Services. According to the company, Jio Credit had assets under management of Rs 30,667 crore as of June 30, 2026, achieved within two years of operations. The digital-first lender offers secured credit products spanning retail assets such as mortgages and loans against securities, along with commercial and supply chain finance.

The proposed transaction is expected to provide Jio Credit with additional capital to support its growth in India, while bringing Bank of America's financial services, governance, risk management and technology expertise into the venture. The companies said the partnership will combine Jio Financial Services' digital reach and knowledge of the Indian market with Bank of America's global financial services expertise.

Equal Board Representation After Transaction

Following the transaction, the Board of Directors of Jio Credit will have equal representation from Jio Financial Services and Bank of America. The existing management team of Jio Credit will continue to oversee its strategy and operations, while Jio Credit will remain consolidated as a subsidiary in Jio Financial Services' financial reporting.

The investment will initially provide Bank of America with a 26.5 per cent equity interest in Jio Credit, which could increase to 49.9 per cent upon exercise of the warrants. The transaction remains subject to regulatory and statutory approvals.

Jio Financial Services Expands Financial Services Ecosystem

Jio Financial Services operates a financial services ecosystem through subsidiaries including Jio Credit, Jio Insurance Broking, Jio Payment Solutions, Jio Leasing Services, Jio Finance Platform and Service, and Jio Payments Bank. The company also has joint ventures with BlackRock across asset management and wealth management, while it has entered into joint ventures with the Allianz Group in reinsurance and general insurance.

The company follows a digital-first model through its JioFinance platform, offering customers access to loans, savings accounts, investment products, UPI, bill payments, recharges, digital insurance and financial management tools.
Also Read - Stock Below Rs 200 Gains Over 2% After Winning Rs 600 Crore+ Transmission Order

Jio Financial Share Price & Financial Performance

Jio Financial Services shares were trading at Rs 259.60, up 1.39 per cent on Thursday. The stock has gained 7.47 per cent over the past month, while it declined 1.70 per cent over the past six months. Over the past year, the shares have delivered a 21.52 per cent return, reflecting the stock's performance across different time periods.

The company reported its strongest-ever quarterly performance in Q1 FY27, with revenue rising sharply to Rs 2,004 crore, compared with Rs 612 crore in Q1 FY26, registering a 227.45 per cent YoY growth. Net profit also reached an all-time quarterly high of Rs 830 crore, compared with Rs 325 crore in the corresponding quarter of the previous year, marking a 155.38 per cent YoY increase. Operating profit stood at Rs 1,397 crore, with the operating profit margin at 70 per cent.

Share your thoughts on this development in the comments below.
Disclaimer: The article is for informational purposes only and not investment advice.