Jio Financial makes flat debut on bourses; falls up to 5% post listing

After spending a month as a dummy stock following demerger from the parent, Reliance Industries, Jio Financial Services Limited (JFSL) finally made its debut on the domestic stock exchanges today. The listing of the financial arm of the oil-to-telecom conglomerate happened ahead of RIL’s upcoming annual general meeting (AGM) on August 28.

JFSL shares got listed at ₹262 on the National Stock Exchange (NSE) against its discovered price of ₹261.85 at a special pre-open session conducted by the NSE on July 20. On the BSE, the Reliance Group stock opened at ₹265 per share.

Post listing, the NBFC stock declined as much as 4.9% to touch a low of ₹248.90 on the NSE, while it hit a low of ₹251.75 on the BSE. The market capitalisation dropped to ₹1.59 lakh crore with nearly 29 lakh shares changing hands over the counter on the BSE.

With a pre-listed market capitalisation of ₹1.65 lakh crore, this is the second-largest listed Non-Banking Financial Corporation (NBFC) in terms of market value after Bajaj Finance (₹4.18 lakh crore).

JFSL shares will be in the trade-to-trade segment for the next 10 trading days. In this stock segment, shares are traded only on a delivery basis which means that the delivery of the stock cannot be taken on the same day and are not eligible for intraday trading.

JFSL, a part of billionaire Mukesh Ambani-led conglomerate, was listed under a dummy ticker symbol on the BSE and the NSE on July 20, but trading was not allowed till its official listing on the exchanges. It was added as a 51st constituent in Nifty50 and 31st constituent in Sensex. The stock will be removed from domestic bourses at the end of the day on the third day of its listing, which is August 24, 2023.

“The equity shares of Jio Financial Services are listed and admitted to dealings on the Exchange in the list of ''T'' Group Securities,” JFSL says in a BSE filing today. The ticker for Jio Financial Services stock is JIOFIN.

The swap ratio for the demerger was fixed at 1:1, which means for every share of RIL held before the record date, the company will award 1 share of JFSL. With RIL’s financial business moving to JFSL, it will own a 6.1% stake in Reliance Industries.

For the quarter ended June 30, 2023, RSIL recorded net profit after tax at ₹145.7 crore against a loss of ₹1.84 crore in the year ago period. The company had posted a profit of ₹31.25 crore in March 2023 quarter. The total income from operations stood at ₹214.57 crore in June quarter compared with ₹44.84 crore in the March 2023 quarter and loss of ₹14.03 crore in the corresponding period last year.

While Hitesh Kumar Sethi has been appointed as managing director and chief executive officer of the new entity for a period of three years, Isha Mukesh Ambani and Reliance executive Anshuman Thakur will be non-executive directors. Veteran banker KV Kamath will be the non-executive chairman at Jio Financial. Besides, former Union Home Secretary Rajiv Mehrishi, former MD and CEO of Punjab National Bank Sunil Mehta, and Bimal Manu Tanna, a chartered accountant who worked with PwC, have been appointed as independent directors on the board of JFSL.

Investors will keep a close eye on RIL’s upcoming AGM for more details regarding JFSL’s future plans. Reliance has been building a vibrant financial services platform to create value for every stakeholder. JFSL is uniquely positioned to capture multiple growth opportunities in financial services bringing millions of Indians into formal financial institutions. It will be a technology-led business, delivering financial products digitally by leveraging the nationwide omnichannel presence of Reliance’s consumer businesses, as per the company.

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