Jio Financial Services, Allianz each invest ₹320 crore in Jio Allianz General Insurance
Shares of Jio Financial Services Ltd ended at ₹216.60, down by ₹1.30, or 0.60%, on the BSE.
Jio Financial Services Ltd on Wednesday said the company and Allianz Europe B.V. have each invested ₹320.05 crore in Jio Allianz General Insurance Ltd, their 50:50 joint venture.Both partners subscribed to and were allotted 32,00,50,000 equity shares of ₹10 each in the joint venture for cash at par, through a rights issue. The total investment by the two partners amounts to ₹640.10 crore.Jio Allianz General Insurance will use the proceeds to fund its business operations.
Following the latest investment, Jio Financial Services' aggregate investment in the joint venture stands at ₹375 crore to date.ALSO READ | Jio Financial Services headcount more than triples in 3 years; crosses 2,000 employeesThe investment by Jio Financial Services is a related party transaction and was made on an arm's length basis. The company said 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.Shares of Jio Financial Services Ltd ended at ₹216.60, down by ₹1.30, or 0.60%, on the BSE.