NB Holdings Corporation, a holding entity within the Bank of America (BofA) group, has formally approached the Competition Commission of India (CCI) seeking regulatory approval to acquire up to 49.9% stake in Jio Credit Limited.
Jio Credit Limited operates as the Non-Banking Financial Company (NBFC) arm under Jio Financial Services Limited (JFSL).
Key Deal Structure & Valuation
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Transaction Size: BofA’s investment is valued at up to ₹18,268 crore (approximately $1.92 billion).
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Phased Acquisition:
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BofA will initially acquire a 26.5% equity stake in Jio Credit.
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The holding will increase up to 49.9% upon the execution and exercise of warrants, subject to regulatory approvals.
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Valuation Multiplier: The transaction value represents approximately 2.5x the net worth of Jio Credit (listed at ₹7,259 crore).
Strategic Highlights of the Joint Venture
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Governance & Operations:
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Jio Financial Services will retain operational control, and Jio Credit will continue to be consolidated as a subsidiary in JFSL’s financial statements.
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The board of Jio Credit Limited will feature equal representation from both JFSL and Bank of America.
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Overlaps Identified: According to the notice submitted to the CCI, the parties noted only “insignificant horizontal overlaps” within the loans and lending services sector in India, given that NB Holdings has no direct operational presence in the country.
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Growth Profile: Since launching, Jio Credit built an Assets Under Management (AUM) footprint of ₹30,667 crore, leveraging Jio’s ecosystem to drive digital retail and consumer financing across urban and rural markets.
