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.
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. Back in May this year, Jio Financial Services Ltd said that it has incorporated a joint venture company with Allianz Europe BV, named Jio Allianz General Insurance Limited.
According to the exchange filing, the joint venture has been formed to carry on the business of general insurance, including health insurance in India, subject to regulatory approvals. The incorporation follows an earlier disclosure regarding the execution of the joint venture agreement between the two entities.
This will translate into a 50% stake in the joint venture. Shares of Jio Financial Services Ltd ended at ₹216.60, down by ₹1.30, or 0.60%, on the BSE.