Shares of Jio Financial Services Ltd are in focus on Monday morning after CARE assigned ratings to the proposed bank facilities and instruments of its wholly-owned arm, Jio Finance Limited (JFL).
CARE assigned a CARE AAA with a stable rating to Jio Finance's Rs 4,000 crore long-term bank facilities and a CARE A1+ rating to its short-term bank facilities.
The Rs 3,000 crore non-convertible debentures (NCDs) received a CARE AAA with a stable rating, and its commercial papers received a CARE A1+ rating.
The rating agency expects JFL to maintain a stable business profile with need-based timely support from JFSL due to its strategic importance, shared brand name, and management control.
JFS plans to engage in lending, leasing, insurance broking, payment banking, asset management, and stock broking through its subsidiaries, associates, and joint ventures, ICRA reported.
Mukesh D. Ambani is the promoter of JFS. The promoter group has increased its stake in JFSL from 45.8% to 47.12% post-listing, showing long-term commitment to the JFS group.
The ratings reflect the company's strong capital buffers for scaling operations, robust liquidity framework, and experienced management team.