Jio Financial Services stock surged nearly 5 per cent on Wednesday. The board of this Mukesh Ambani-backed company had approved the acquisition of 7.9 crore shares of Jio Payments Bank Ltd (JPBL) from State Bank of India (SBI).
The consideration amounts to ₹104.54 crore, according to stock exchange disclosure.
Post-acquisition, JPBL will become a wholly owned subsidiary of the company. It was established JPBL as a joint venture between Jio Financial Services (formerly known as Reliance Strategic Investments Ltd) and SBI.
The acquisition is subject to RBI approval and is expected to be completed within 45 days post receipt of RBI approval, exchange filing added.
Jio Financial shares soared 5.17 per cent to ₹217.06 as at 11.26 am, after hitting a high of ₹217.66. The market capitalisation stood at ₹1.37 lakh crore. The stock had recently hit a 52-week low due to selling pressure and market volatility.
It is set to join the Nifty 50 index by the end of March.
Meanwhile, SBI shares were up 1.08 per cent to ₹723.80 on the NSE as at 11.33 am.