According to reports from The Hindu BusinessLine, The Economic Times, and Moneycontrol, Jio Finance and Allianz Europe B.V. have each invested ₹320.05 crore in Jio Allianz General Insurance through a rights issue. Both partners subscribed to and were allotted 32,00,50,000 equity shares of ₹10 each in the joint venture for cash at par. The total investment by the two partners amounts to ₹640.10 crore. As per The Hindu BusinessLine and The Economic Times, the joint venture will utilise the funds to fund its business operations. The investment was made at 2:42 p.m. on Wednesday as reported by The Economic Times.
As reported by The Hindu BusinessLine, The Economic Times, and Moneycontrol, the joint venture has been formed as a 50:50 partnership between the two entities. Jio Finance's aggregate investment in the joint venture now stands at ₹375 crore to date, following the latest investment. The joint venture has been established to carry on the business of general insurance, including health insurance in India, subject to regulatory approvals. According to Moneycontrol, the incorporation followed an earlier disclosure regarding the execution of the joint venture agreement between the two entities.
According to the exchange filing reported by The Hindu BusinessLine, The Economic Times, and Moneycontrol, the investment by Jio Finance is classified as a related party transaction and was made on an arm's length basis. The company stated that none of its promoter, promoter group or other group companies have any interest in the investment. No governmental or regulatory approval is required for the transaction. As per The Economic Times and Moneycontrol, the company made the investment at 2:42 p.m. on Wednesday.
As reported by The Hindu BusinessLine, The Economic Times, and Moneycontrol, shares of Jio Financial Services closed at ₹216.60, down by 0.60% on the BSE following the announcement. The investment was first disclosed in May when the joint venture was incorporated between the two entities. According to Moneycontrol, as part of the initial subscription, Jio Financial Services invested ₹4.95 crore towards 49,50,000 equity shares with a face value of ₹10 each, giving it a 50% stake in the joint venture.
