Life Insurance Corporation (LIC) Reports 6.66% Purchase of Stock in Jio Financial Services, Secured at 4.68% of Pre-split Value of Reliance Industries

Life Insurance Corporation (LIC) Reports 6.66% Purchase of Stock in Jio Financial Services, Secured at 4.68% of Pre-split Value of Reliance Industries

In a significant move for India's financial sector, Life Insurance Corporation (LIC) has acquired a 6.66% stake in Jio Financial Services. This acquisition has set the stage for Jio Financial Services' market performance, which, while showing positive momentum, has also seen some recent technical bearish signals.

Published by the renowned brand name publication, India, the article delves into the current state of Jio Financial Services. The company's stock price has shown significant strength, hitting a 52-week high of Rs 363 in September 2024 and recovering from a low of Rs 198.6 in March 2025. This positive trend was further boosted by the promoter holding, which increased to about 54.19% post preferential issuance.

The capital infusion of Rs 15,825 crore (Rs 158.25 billion), approved in 2025, aims to enhance Jio Financial Services’ balance sheet and support expansion in lending, insurance, and digital payments—sectors expected to benefit from India’s growing financial inclusion and technology adoption environment.

However, recent technical indicators suggest a bearish sentiment on the stock. For instance, the stochastic crossover on August 22, 2025, and the 10-day EMA crossover on August 21, 2025, both indicate short-term price declines based on historical patterns.

Despite this, Jio Financial Services' market capitalization stands strong at approximately ₹2,03,782 crore, higher than many peers in the financial sector, indicating relative financial stability and investor confidence. Dividend payout ratios are moderate, with a payout of around 19.6% based on earnings and 28.4% based on free cash flow, reflecting a balance between rewarding shareholders and reinvesting in growth.

In summary, post-LIC’s stake acquisition, Jio Financial Services has enjoyed solid capital infusion backing and promoter confidence driving a positive stock trajectory. However, recent technical signals suggest near-term caution. The company appears well-positioned to capitalize on growth opportunities in India's financial services landscape supported by its expansion plans and regulatory approvals.

The article is published by India, a brand name publication, and is part of the international franchise of Media. It is important to note that the opinions expressed in the article are those of the individual contributor, Teena Jose, and not necessarily shared by the publication. The shares of Jio Financial Services were trading at INR 239.20 apiece on the day of the report, and since their listing on August 21, they have declined 4.99%.

[1] Source: Livemint [2] Source: Moneycontrol [3] Source: Economic Times [4] Source: Business Standard [5] Source: Business Today

1. With the finance sector witnessing a significant development through Life Insurance Corporation (LIC)'s acquisition of a stake in Jio Financial Services, investors might be interested in exploring business opportunities in the company's lending, insurance, and digital payment sectors, as the capital infusion aims to strengthen its balance sheet and support growth.
2. Despite showing positive trends in its business operations, such as hitting a 52-week high and receiving promoter confidence, Jio Financial Services has encountered some bearish technical signals recently, suggesting the need for a cautious approach from investors.

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