The stock gained 3.27 per cent to hit an intraday high of ₹263.35 per share during the session.
BofA to acquire up to 49.9% in Jio Credit
Bank of America and Jio Financial Services have agreed to form a joint venture under which BofA will acquire up to a 49.9 per cent stake in Jio Credit, Jio Financial's wholly owned non-banking financial company (NBFC).
The proposed transaction is potentially valued at ₹18,268 crore ($1.92 billion).
Initial stake set at 26.5%
BofA will initially acquire a 26.5 per cent stake in Jio Credit, with its holding potentially increasing to 49.9 percent through the exercise of warrants.
Jio Credit will issue equity shares worth up to ₹6,613 crore and warrants worth up to ₹11,655 crore to BofA as part of the transaction.
Partnership to expand lending business
The partnership will combine Jio Financial's local customer base, scale and digital capabilities with Bank of America's global financial expertise.
The investment is also expected to provide additional capital to Jio Credit as it expands its lending operations in India's rapidly growing financial services market.