Market debut: Jio Financial Services hit 5% lower circuit

Jio Financial Services Ltd (JFS), the financial arm demerged from Reliance Industries Ltd, debuted trading on the BSE at Rs 265 per share, reflecting a 1.2% premium over its discovered price of Rs 261.85 on July 20. 

Meanwhile, the NSE listed the shares at Rs 262 each, contributing to JFS’s market capitalisation of Rs 1,58,133 crore. These shares are categorized under the ‘T’ group securities for trading on the BSE. 

It must be noted that over the next ten days, Jio Financial Services will be operational within the Trade-to-Trade (T2T) segment, permitting shares to be acquired exclusively for delivery purposes. During this period, intraday trading of JFS shares will not be allowed. 

During the day, the stock experienced a high of Rs 278.20 and a low of Rs 251.75. The shares of JFS have triggered the lower circuit of 5%, and they are still within the lower circuit. Currently, no buyers are available. 

Recently, JFS shares were allocated to eligible shareholders’ Demat accounts in a 1:1 ratio. Following a dedicated trading session on July 20, the valuation of JFS was established at Rs 261.85 per share, surpassing the projections of many brokerage firms. 

Outlined within its annual report, Reliance Industries (RIL) expressed that the newly established financial division will generate value for shareholders and offer them an opportunity to engage in a fresh growth platform. 

If we check the financials of Reliance Strategic Investments, the demerged entity of Reliance Industries, recorded a consolidated net profit after tax of Rs 331.92 crore for the first quarter, with a total income of Rs 414.13 crore. For the year ended March 31, the total income was reported at Rs 44.84 crore, with a profit of Rs 31.25 crore. On a standalone basis, the net profit for the quarter amounted to Rs 145.47 crore, while the total income was Rs 214.57 crore. 

FTSE Russell, the index provider, excluded Jio Financial Services from all FTSE indices due to the company’s absence from public listing, despite the demerger news being over 20 days old. 

As per the latest update, JFS will maintain its presence in several FTSE indices starting from August 22. Additionally, this upcoming publicly listed company is set to join the MSCI Global Standard Index beginning August 23, as outlined in a notification. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.