Jio Financial Services Granted MCA Approval for Hitesh Sethia as MD & CEO

Reliance’s Jio Financial Services (JFS) has recently gained the green light from the Ministry of Corporate Affairs (MCA) to welcome Hitesh Kumar Sethia aboard as its fresh managing director and CEO.

Sethia’s tenure as the company’s MD and CEO spans three years, commencing from November 15, 2023. This significant announcement was shared through a regulatory filing with the bourses by JFS, highlighting the receipt of the MCA’s approval letter on April 24.

“We’re excited to share that JFS, through a filing with the BSE, has received approval from the Ministry of Corporate Affairs, as per their letter dated April 24, 2024. This approval validates the appointment of Mr. Hitesh Kumar Sethia as the Managing Director and Chief Executive Officer, starting November 15, 2023, for a duration of three years.

Related: Jio Financial Services Q4 Profit Jumps 6% to ₹311 Cr

Earlier this month, news surfaced that the startup is back in gear for its debut on the stock market, eyeing a $500 million initial public offering (IPO). Within the next three months, they aim to submit their draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).

Rumor has it, the startup is deep in talks with top investment banks like Bank of America, Goldman Sachs, Citi, Kotak, and Axis to orchestrate their grand entrance into the public market.

It’s worth noting that Mr. Sethia, as expatriate managerial personnel, will need to obtain a proper employment visa to work in India, as mentioned in the approval letter. This appointment has been sanctioned in accordance with the regulations outlined in the Companies Act, 2013. Jio Financial Services initiated the process for these clearances back in January of this year.

JFS made its debut on the stock market in August of the previous year following its separation from its parent company, Reliance Industries. This approval arrives as JFS is strengthening its presence in the financial services sector. Notably, it teamed up with BlackRock last year to venture into Indian asset management, operating under the banner Jio BlackRock. Just recently, both parties disclosed plans for yet another joint venture aimed at launching wealth management and brokerage enterprises.

The company recently announced its dedication to meeting the financial needs of its suppliers in the lending sector while also expressing its intentions to expand into new areas like home loans, property-backed loans, and mutual fund-backed loans in the future.

Additionally, JFS has introduced its own debit card and a user-friendly mobile app for merchants as part of its payment services. Moreover, it has initiated a trial run of its voice-enabled service in Mumbai. In the realm of insurance, JFS proudly boasts partnerships with 29 insurance firms.

Jio Financial Services witnessed a noteworthy 6% increase in net profits from the previous quarter, reaching INR 311 Cr in the quarter ending March 2024. During this same period, the company experienced a slight uptick in operating revenue, rising to INR 418 Cr from INR 414 Cr in Q3 FY24.

Jio Financial Services (JFS) recently received approval for the appointment of Hitesh Kumar Sethia as Managing Director and CEO, commencing November 15, 2023, for a three-year term. The company is expanding its presence in the financial services sector with joint ventures, such as Jio BlackRock, and plans for wealth management and brokerage enterprises. Additionally, JFS is diversifying its offerings, focusing on loans and introducing new payment services. With partnerships with 29 insurance firms, JFS saw a 6% increase in net profits in Q4 FY24, reaching INR 311 Cr, and a marginal rise in operating revenue to INR 418 Cr.