Jio Financial, Allianz invest Rs 320 crore each in Jio Allianz General Insurance

As per the latest business developments, Jio Financial Services Ltd and Allianz Europe B.V. have each invested Rs 320.05 crore in Jio Allianz General Insurance Ltd, their 50:50 joint venture, the firm stated on Wednesday.

Both partners subscribed to and were allotted 32,00,50,000 equity shares of Rs 10 each in the joint venture for cash at par through a rights offering. The total investment by the two partners amounts to Rs 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 Rs 375 crore to date.

The investment by Jio Financial Services is a related-party transaction and was made on an arm's-length basis. The firm stated none of its promoter, promoter group or other group firms have any interest in the investment. No governmental or regulatory approval is required for the transaction.

In May this year, Jio Financial Services stated it had incorporated a joint venture 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 followed an earlier disclosure regarding the execution of the joint venture agreement between the two entities.

As part of the initial subscription, Jio Financial Services invested Rs 4.95 crore towards 49,50,000 equity shares with a face value of Rs 10 each, giving it a 50% stake in the joint venture.