Jio Financial Services Lists On The Stock Exchanges Today At This Rate
Jio Financial Services, a subsidiary of Reliance Industries, has made its debut on the stock exchanges. The company started trading at around Rs 262 on the NSE and Rs 265 on the BSE.
Its market capitalization was estimated at Rs 1.66 lakh crore at the time of listing. Jio Financial Services primarily operates in the non-banking financial company (NBFC) and credit markets, with plans to expand into insurance, digital payment, and asset management.
Shareholders of Reliance Industries received one share of Jio Financial Services for each share of Reliance they held. The stock will be in the trade-to-trade segment for the next 10 sessions.
Jio Financial Services is the 51st stock on the Nifty 50 index and the 31st on the Sensex. It will be removed from both indices on August 24.
Passive trackers of the Nifty 50 index can sell around 9 crore JFS shares, while Sensex index trackers can sell 5.5 crore shares.
The stock will remain on the FTSE indices and will be added to the MSCI Global Standard Index on August 23.
Jio Financial Services, the new non-banking financial company (NBFC) under Reliance Industries, is expected to focus on lending to merchants and customers.
With Reliance Industries’ wide reach in kirana stores (small neighborhood shops), Jio Financial Services aims to leverage its parent company’s strength in the growing industry.
The company plans to use proprietary data analytics alongside traditional credit bureau-based underwriting to make lending decisions.
Analysts believe that Jio Financial Services will maintain industry discipline and make rational decisions as long as the parent company sees it as a long-term venture.
They also believe that existing NBFCs in the market need not worry about Jio Financial Services taking away their business, as the market is growing and there is room for multiple players.
However, existing UPI players like Paytm and Phonepe, who are just starting out in the lending space, may face some impact.
Jio Financial Services also plans to expand into non-lending financial businesses such as insurance and asset management.
The company has already partnered with Blackrock to launch a mutual fund company and is considering entering the digital broking space.