Jio Financial Services Listing: Mukesh Ambani’s Jio Financial Services or JFSL made a debut on Dalal Street on Monday. Shares of Jio Financial Services, the demerged financial services arm of Reliance Industries, listed at Rs 262 per share on NSE, which is almost the same as its discovered price of Rs 261.85. On the BSE, the stock began trading at Rs 265.
For the first ten days post-listing, Jio Financial Services will be trading in the Trade-To-Trade (T2T) segment, under which, shares will only be eligible for a purchase under the delivery method and not on an intraday basis.
“JFSL will go with the India story and the story of being a digital-first institution,” JFSL’s non-executive chairman KV Kamath said at the listing ceremony held in BSE.
He said there are some advantages of being a little late to the party. “You have the advantage of riding on technological developments which are already visible and then optimising them to the fullest extent,” Kamath said adding that JFSL intends to be a full-service financial sector player.
On July 21, the exchanges conducted a special pre-open session for the demerged entity in which the discovered price for the stock worked out to be Rs 261.85 and the implied market cap was Rs 1.65 lakh crore.
Jio Financial Services will primarily operate in the NBFC market and credit market segments and has strategic plans to expand its operations into insurance, digital payment, and asset management verticals.
Jio Financial Services is positioned uniquely to capture the growth opportunities in the financial services sector and plays a crucial role in transforming the digital finance landscape in India, said Reliance Industries Chairman and Managing Director Mukesh Ambani in his message to shareholders in the company’s 2022-23 annual report.
Jio Financial Services is the 51st stock on the Nifty 5o and 31st on the Sensex. The stock will be removed from both indices after the end of the day on the third day of its listing. So, the exclusion will basically happen on August 24.
Nifty 50 index passive trackers can sell around 9 crore JFS shares and Sensex index trackers can sell 5.5 crore shares, as per Nuvama Alternative & Quant Research.
The stock will also remain on the FTSE indices while it will be added to the MSCI Global Standard Index on August 23.
At a market capitalisation of about Rs 1.68 lakh crore, JFSL is already India’s 33rd largest listed company and bigger than the likes of HDFC Life Insurance, SBI Life and IndusInd Bank.
Within the NBFC basket, only Bajaj Finance and Bajaj Finserv are larger entities.
However, minutes after listing, arbitrage traders and RIL investors who aren’t comfortable owing the financial stock, which they got as part of the demerger, started booking profits. Amid multiple block deals on NSE, JFSL shares fell 4.6 per cent to Rs 250.
Comments
0 comment