Shares of Jio Financial Services gained over 3% to Rs 263 on the BSE on Thursday after the company announced that Bank of America will acquire a 49.9% stake in Jio Credit, a wholly owned non-bank lending arm of the company, in a Rs 18,268 crore joint venture deal.
Under the transaction, the American banking major will initially acquire a 26.5% equity interest in Jio Credit through a preferential allotment of equity shares. Its stake could subsequently rise to 49.9% through the exercise of warrants, subject to regulatory and statutory approvals.
