Jio Financial Services-BofA JV: ₹18,268 cr for 49.9%

Agreement announced on August 12, 2026

Jio Financial Services Limited (JFSL) and Bank of America Corporation (BofA) announced a definitive agreement for BofA to become a joint venture partner in JFSL’s wholly owned NBFC lending subsidiary, Jio Credit Limited (JCL). The transaction is structured through a preferential allotment of equity shares and warrants in JCL. JFSL said the arrangement can take BofA’s ownership in Jio Credit up to 49.9% if the warrants are fully exercised. The investment value, including the equity shares and warrants, is up to ₹18,268 crore, which the parties also described as about $1.9 billion. The statement cited an exchange rate assumption of ₹96 per US dollar.

Initial 26.5% stake, with a path to 49.9%

Under the agreement, BofA will acquire an initial 26.5% equity interest in Jio Credit. The stake can increase to 49.9% upon exercise of the warrants issued as part of the same transaction. JFSL described the arrangement as a joint venture partnership in its lending arm, while also stating that it will continue to hold the remaining stake in Jio Credit. The companies also indicated that Jio Credit will continue to be consolidated as a subsidiary in JFSL’s financial reporting.

Preferential allotment structure: shares plus warrants

The investment is being made via a preferential issue on a private placement basis. NB Holdings Corporation, a wholly owned subsidiary of Bank of America (referred to in disclosures as NB Holdings, USA), is the investing entity. As disclosed by JFSL, the investment has two components: a cash subscription to equity shares and a subscription to warrants. Each warrant is convertible into one fully paid-up equity share of Jio Credit within 18 months from the date of allotment.

Equity shares: 4.29 crore shares for up to ₹6,613 crore

JFSL disclosed that NB Holdings will subscribe to up to 4.29 crore equity shares of face value ₹10 each for cash through a preferential issue. The aggregate consideration for the equity shares is up to ₹6,612.90 crore. This allotment represents 26.50% of the post-issue paid-up equity share capital of Jio Credit. This is the initial stake that makes BofA a significant minority shareholder in the NBFC.

Warrants: 7.56 crore instruments for up to ₹11,655 crore

In addition to the equity shares, NB Holdings will subscribe to up to 7.56 crore warrants for an aggregate consideration of up to ₹11,655.32 crore. JFSL disclosed that 25% of the warrant consideration is payable at subscription, with the balance payable at conversion. The warrants are convertible within 18 months from the date of allotment, and if all warrants are converted, NB Holdings’ holding will rise to 49.90% of Jio Credit’s paid-up equity share capital.

Governance: equal board representation, management to continue

JFSL stated that after the transaction, Jio Credit’s Board of Directors will have equal representation from both JFSL and BofA. The disclosures also said the existing management team will continue to drive the NBFC’s strategy and operations. This governance structure reflects the joint venture nature of the partnership while keeping the operating team in place.

Approvals and timing: agreements executed on August 12

The transaction is subject to regulatory and statutory approvals, as stated in the company’s regulatory filing and joint announcement. JFSL disclosed that its Board of Directors, at a meeting held on August 12, 2026, approved execution of the Share Subscription Agreement and Shareholders’ Agreement among JFSL, Jio Credit and NB Holdings. The agreements were executed on August 12, 2026 at 8:15 PM (IST). The completion will depend on the required approvals before the preferential allotment and related steps are implemented.

Valuation markers disclosed in statements and filings

The companies described the investment as about $1.9 billion, and one disclosure noted that the investment values Jio Credit at about $1.8 billion. Separately, JFSL’s stock exchange filing referenced that the deal size is about 2.5 times the net worth of Jio Credit, which was estimated at ₹7,259 crore. These figures provide context for the scale of the capital infusion relative to Jio Credit’s balance sheet.

Jio Credit metrics cited: AUM at ₹30,667 crore (June 30, 2026)

One of the disclosed operating metrics was Jio Credit’s assets under management (AUM), reported at ₹30,667 crore as of June 30, 2026. While the announcement focused on the ownership structure and the funding instruments, the AUM figure helps frame Jio Credit’s operating footprint at the time of the agreement.

Key transaction details at a glance

Breakdown of the preferential issue

Why the structure matters for investors tracking NBFC partnerships

The deal outlines a clear two-step path: an immediate equity position for BofA and a defined mechanism to increase ownership through warrant conversion. The preferential allotment route and the 18-month conversion window set the timeline for when the stake could move from 26.5% toward 49.9%, subject to approvals and BofA’s decision to exercise the warrants. JFSL also clarified that it will retain the remaining stake and continue consolidating Jio Credit, which is relevant for how investors interpret control and reporting.

What to watch next

The next milestones are the regulatory and statutory approvals required to complete the preferential allotment and the subsequent warrant-related steps. Investors will also track the timing of the warrant allotment and, later, whether and when the warrants are exercised within the 18-month window. Any updates on the approvals process and closing conditions are likely to be communicated through further stock exchange filings from JFSL.