Jio Financial Services, the separated financial division of Reliance Industries, entered the stock market for the first time on Monday. The shares were introduced at ₹265 per share on the BSE and ₹262 per share on the NSE, compared to the determined price of ₹261.85 per share. Nevertheless, the stock rapidly declined by 5 per cent, reaching its lower price threshold of ₹251.75 on the BSE. Similarly, on the NSE, it also reached its 5 per cent lower price cap of ₹248.90.
According to the BSE, starting from Monday, August 21, 2023, the shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) have been included for trading on the exchange under the category of T group securities.
The share price of Jio Financial Services will be part of the "Trade-for-Trade" section for a period of 10 trading days.
On July 20, Jio Financial Services was separated from Reliance Industries (RIL). In the previous year, during the announcement of its earnings for the September quarter, Reliance Industries revealed its plan to separate its financial services business and list it independently on the stock exchanges, naming it Jio Financial Services Ltd. The Mumbai branch of the National Company Law Tribunal (NCLT) gave its approval for the demerger through an order dated June 28 (uploaded on the NCLT website on July 5).
Brokerage firms hold the view that this demerger has the potential to release substantial value for both Reliance Industries and its shareholders. Kotak Institutional Equities, a brokerage company, highlighted that Jio Financial Services is set to become the main company overseeing financial services operations. This move is expected to gain advantages from the extensive presence of RIL's diverse enterprises and its technological expertise.
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