Jio Financial Services Listing Highlights: JFSL shares close at 5% lower circuit at ₹251.75 apiece on listing day

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As per the BSE, from Monday, August 21, 2023, the shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) are admitted to dealings on the exchange in the list of T group of securities.

Jio Financial Services' share price will be in the "Trade-for-Trade" segment for 10 trading days.

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According to stock market experts, fair value of Jio Financial Services share price comes around ₹180 apiece levels and market is expected to discount further as the stock is still trading at much higher price than its fair value. They said that on the basis of fair value of the company, market cap of Jio Financial Services Ltd would be around ₹1.10 lakh crore to ₹1.15 lakh crore. 

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Jio Financial Services share price ended at 5% lower circuit after making a lacklustre debut on the stock exchanges on Monday. JFSL share price ended at ₹251.75 apiece on the BSE, as compared to its listing price of ₹265 and its discovered price of ₹261.85 apiece. 

JFSL shares closed at ₹248.90 apiece on the NSE. It started trading at ₹262 on the NSE.

At closing, JFSL market capitalisation on BSE was ₹1,59,944 crore, while that on NSE was ₹1,58,133 crore.

Meanwhile Reliance Industries share price ended 1.44% lower at ₹2,520 apiece on the BSE.

The promoters hold 46% stake in Jio Financial Services. The state-run insurance behemoth Life Insurance Corporation of India (LIC) holds 7% stake in the NBFC.

Other public shareholders hold 40%, while SBI Mutual Fund, Europacific Growth, BNY Mellon and Government of Singapore have 2% share holding each in JFSL.

Jio Financial Services Ltd, the demerged financial lending arm of Reliance Industries Ltd, and BlackRock, the world’s largest asset manager, have joined hands to set up an asset management company with a combined investment of $300 million.

On July 26, in a joint statement with BlackRock, Jio Financial said that the joint venture (JV), Jio BlackRock, would deliver “tech-enabled access to affordable, innovative investment solutions for millions of investors in India."

The two partners plan to invest $150 million each in the JV, making it the 44th player in the ₹44.39 trillion Indian mutual fund industry, which is currently dominated by SBI Mutual Fund, ICICI Prudential Mutual Fund and HDFC Mutual Fund. Read here

On companies coming under the umbrella of Jio Financial Services Ltd after demerger from Reliance Industries Ltd, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio said, “JFSL is a financial services undertaking with investments in six companies — Reliance Industrial Investments and Holdings (RIIHL), Reliance Payment Solutions, Jio Payments Bank, Reliance Retail Finance, Jio Information Aggregator Services and Reliance Retail Insurance Broking.”

The Bonanza Portfolio expert said that demerger decision is basically taken to keep financial service business distinct from other businesses and may attract a different set of investors, strategic partners, lenders and other stakeholders. Post demerger, aim is to lend to consumers and merchants based on proprietary data analytics and eventually branch out to insurance, payments, digital broking and asset management.

Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal said, “Those who got Jio Financial Services shares through allotment, they are advised to hold the stock with stop loss at ₹232 apiece levels.”

According to stock market experts, the fair value of the Jio Financial Services share price comes around ₹180 apiece levels and market is expected to discount further as the stock is still trading at much higher price than its fair value. 

They said that on the basis of fair value of the company, market cap of Jio Financial Services Ltd would be around ₹1.10 lakh crore to ₹1.15 lakh crore. So, those who have JFSL shares in their portfolio are advised to book profit on any rebound in the stock and re-enter around ₹180 apiece levels.

On why Jio Financial Services share price is nosediving after muted listing, Vaibhav Kaushik, Research Analyst at GCL Broking said, “Crash in Jio Financial Services share price was expected as the stock was available at much higher price of its fair value. But, market was expecting this to happen after touching ₹330 to ₹340 levels. But, it seems that index funds have decided to book profit instead of waiting for other institutional investors move.”

The GCL Broking expert added that the fair value of the newly listed stock suggests that its market cap would come down to the tune of ₹1.10 lakh crore to ₹1.15 lakh crore. In that case, Jio Financial Services share price would fall around ₹180 apiece levels. 

He advised JFSL shareholders to exit after any rebound in the scrip.

According to stock market experts, fair value of Jio Financial Services share price comes around ₹180 apiece levels and market is expected to discount further as the stock is still trading at much higher price than its fair value. They said that on the basis of fair value of the company, market cap of Jio Financial Services Ltd would be around ₹1.10 lakh crore to ₹1.15 lakh crore. So, those who have JFSL shares in their portfolio are advised to book profit on any rebound in the stock and re-enter around ₹180 apiece levels. Read full report here

Reliance Industries Ltd (RIL) had earlier announced that the company's 46th Annual General Meeting (AGM) would take place on 28th August 2023. The RIL AGM will be held at 2:00 PM (IST) on the above said date. 

In this AGM, the focus will be on any announcement made by the RIL board in regard to the business plans of the Jio Financial Services. Read here

Jio Financial has been temporarily added to Nifty50 along with 18 other indices of NSE, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy, and Nifty Oil & Gas without replacing any stocks. Jio Financial has also been added to 18 of the S&P BSE indices also, including the S&P BSE Sensex. 

However, after three days of listing, JFSL stock will be dropped from all the indices at the last traded price. JFSL shares will be removed from all indices on Wednesday evening, i.e. after trading ends on August 23.

JFSL shares will be eligible to be added into the indices in the next cycle.

Reliance Industries share price declined over a percent after the Jio Financial Services share listing on Monday. Reliance shares fell as much as 1.55% to ₹2,517.00 apiece on the BSE. Meanwhile, Jio Financial Services shares declined 5% to hit a lower circuit after the shares were listed on the exchanges.

At 11:30 am, Reliance shares were trading 1.31% lower at ₹2,523.15 apiece on the BSE.

Jio financial Services Ltd share price will be in the Trade-for-Trade segment for 10 trading days. Therefore, no intraday trading will be allowed in JFSL shares. Investors can perform only delivery based buying and selling under T2T Group stock.

Jio Financial Services boasts a market capitalization of nearly ₹1.6 lakh crore at the opening price. JFSL m-cap now stands at ₹1,59,943 crore at a share price of ₹251.75 apiece on the BSE. The company’s m-cap on NSE stands at ₹1,58,133 crore at the current share price of ₹248.90 apiece.

Jio Financial Services Ltd (JFSL) share price declined 5% soon after listing on the stock exchanges on Monday. JFSL shares were locked at 5% lower circuit at ₹251.75 apiece on the BSE. JFSL stock was listed at ₹265 on BSE and ₹262 on NSE against the discovered price of ₹261.85 apiece.

JFSL shares made an intraday high of ₹278.20 on BSE and ₹262.05 in NSE aftre listing. However, JFSL shares succumbed to selling pressure and the the stock was locked at 5% lower circuit at ₹248.90 apiece on NSE.

The equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be admitted to dealings on the Exchange in the list of T Group of Securities. Jio financial Services Ltd share price will be in Trade-for-Trade segment for 10 trading days.

Jio Financial Services share price was listed at ₹265 on the BSE as compared to the discovered price of ₹261.85 apiece. On NSE, JFSL shares were listed at ₹262 apiece.

Jio Financial Services shares settle at ₹265 apiece in the pre-open on BSE as compared to the discovered price of ₹261.85 apiece.

On JFSL listing date, grey market has started dropping hint about the kind of opening Jio Financial Services share price may have. According to market observers, shares of Jio Financial Services Ltd are available at a premium of ₹73 in grey market today, which Jio Financial Services GMP (grey market today) is ₹73. But, as per the stock market experts, much will depend upon the kin do opening Indian stock market gets on Monday. In case of weak opening, we may see the much awaited Jio Financial Services opening around ₹300 apiece levels whereas in case of bull trend, the JFSL share price may open around ₹325 apiece levels. Read more

Jio Financial Services shares will be in the trade-for-trade segment for 10 trading days. JFSL shares will be dropped from all the NSE and BSE indices T+3 days after its listing.

While JFSL listing date is now fixed on August 21, the stock will compulsorily be removed from indices on August 24.

Jio Financial Services will remain in MSCI and FTSE indices.

Reliance Industries share price traded flat on Monday ahead of the Jio Financial Services Listing. Reliance share price eased 0.48% to ₹2,544.55 apiece on the BSE after opening 1% lower than the Friday’s close. RIL shares opened at ₹2,531 against Friday’s close of ₹2,556.70 apiece.

After strong than expected looking debut of Jio Financial Services shares, stock market experts are highly bullish on this new Reliance entity on Dalal Street. They believe that JFSL would be a pure financial company that will be in lending, investing and other financial business'. Appointment of two banking pioneers KV Kamath and Hitesh Sethi is a glaring example of it. Read here

Jio Financial Services Ltd has appointed veteran banker KV Kamath as its chairman and Hitesh Sethia its MD & CEO. 

Charanjit Attra is the Chief Operating Officer (COO) of JFSL. Attra is former CFO of state-run SBI. Abhishek Pathak is the Chief Financial Officer (CFO) of JFSL.

JFSL share price may open above the market value of ₹262 levels as some bulk deal is expected in this stock once it gets listed on the Indian exchanges. However, some index funds who got this stock due to Reliance shareholding, might indulge in selling after listing. So, much will depend upon the market mood. In case of strong opening, we may see the stock open around ₹325 apiece levels whereas in case of weak opening, Jio Finance Services share price may open around ₹300. In other words, JFSL shareholders may expect the stock to list at ₹300 or above, said Avinash Gorakshkar, Head of Research at Profitmart Securities said on Jio Financial Services share listing.

According to market observers, Jio Financial Services GMP today is ₹73, which means grey market is expecting that Jio Financial Services listing price would be around ₹335 ( ₹262 + ₹73), which is around 28 per cent higher from Jio Financial Services shares' market value of ₹262 apiece.

The market cap of JFSL shares is expected to be around ₹1.75 lakh crore to ₹2 crore. In that case the stock may touch up to ₹340 levels. However, this level could be a big resistance for the stock and hence, those who have this stock in their portfolio are advised to book profit and exit if their view is short, said Vaibhav Kaushik, Research Analyst at GCL Broking.

Post demerging with Reliance Industries (RIL), Jio Financial Services (JFSL) boasts off an implied market capitalisation of ₹1.6 lakh crore, that's way behind Bajaj Finance m-cap of ₹4.16 lakh crore, but significantly higher to its contemporaries in the space. The value of Jio Financial Services share price was derived at ₹261.85 apiece on the NSE after the special pre-open call auction session held on stock exchanges on July 20. Read here

Jio Financial Services, the demerged firm of Mukesh Ambani-led Reliance Industries Ltd, will remain in the FTSE All-World index and other global indices, said FTSE Russell in a statement released by on Friday.

According to FTSE, Jio Financial will have an unchanged share issuance of 6,765,591,509 and an investability weighting of 49.66% in the FTSE All-World index. Read here

The value of Jio Financial Services share price was derived at ₹261.85 apiece on the NSE after the special pre-open call auction session held on stock exchanges on July 20.

The discovered price of JFSL shares was much above analyst expectations who had valued it at ₹125-225 and RIL's cost of acquisition of ₹133.

Jio Financial Services Ltd shares are available at a premium of ₹73 in grey market today, which means Jio Financial Services GMP (grey market today) is ₹73. But, as per the stock market experts, much will depend upon the kin do opening Indian stock market gets on Monday. In case of weak opening, we may see the much awaited Jio Financial Services opening around ₹300 apiece levels whereas in case of bull trend, the JFSL share price may open around ₹325 apiece levels.

Jio Financial Services (JFSL), which was demerged from Reliance Industries Ltd (RIL), will be listed on Indian stock exchanges today, on August 21, Monday.

“Trading Members of the Exchange are hereby informed that effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities," a notice on BSE said. Read here