Jio Financial Services Makes Debut on D-Street; Hits 5% Lower Circuit Shortly After
It began trading at Rs 262 per share on NSE.
Jio Financial Services Ltd (the demerged financial services undertaking of Reliance Industries Ltd) made its debut on Dalal Street on Monday. The shares began trading at Rs 262 on NSE and Rs 265 on the BSE.
However, the shares hit a 5% lower circuit of Rs 248.9 on the NSE, shortly after being listed, due to multiple block deals on the stock exchange.
It will be trading in the Trade-To-Trade (T2T) segment for the first ten days post-listing. It means the shares can only be bought under the delivery method and shall not be eligible for intraday trading.
It's worth noting that Jio Financial Services will primarily operate in the NBFC market and credit market segments. The company will soon expand its presence in other sectors like insurance, digital payment, and asset management.
KV Kamath's words
JFSL's non-executive chairman KV Kamath said, "JFSL will go with the India story and the story of being a digital-first institution. You have the advantage of riding on technological developments which are already visible and then optimizing them to the fullest extent."
Sandip Sabharwal's statement
Stock market expert Sandip Sabharwal said in an interview with The Economic Times, "Jio Financial comes into a highly competitive space with established players both on the banking side and the NBFC side. So, it is not like a duopoly kind of industry like telecom which is very capex intensive and they came in at a time when they could capture huge opportunities. Still, they will be able to do well because the financial inclusion still has to grow and overall India still continues to be a credit-starved economy. But the value of the company is in terms of the market capitalisation not the business because there is no business per se to speak of. So, we will have to give it time and the discovered price is much higher than what was being initially estimated. So, near-term upsides are very tough to see."
