Jio Financial Services Hit 5% Lower Circuit On Its Maiden Trading Day
Jio Financial Services, the demerged financial services unit of Reliance Industries, had a volatile market debut on Monday. Shares of Jio Financial Services hit the lower circuit after slipping 5 per cent to a low of Rs 248.90 apiece. On BSE, the company's shares were trading 5 percent lower at 251.75 apiece at 1:53 PM.
Jio Financial Services Ltd (JFSL) demerged from Reliance, months after the formal announcement of the move in October last year.
"Trading members of the exchange are hereby informed that effective from Monday, August 21, 2023, 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," BSE said in a notice on Friday.
BSE said that the scrip will be in the trade-for-trade segment for 10 trading days.
As per the demerger norms, the governing body of Jio Financial Services distributed a total of Rs 635.32 crore shares with a nominal value of Rs 10 each to qualified stakeholders of Reliance Industries. Shareholders of Reliance Industries were allocated shares at 1:1 ratio. This implies for each share of Reliance Industries held, as on July 20, every shareholder was granted one share of Jio Financial Services.
During a one-hour special trading session on July 20, shares of Jio Financial Services traded at Rs 261.85 apiece, which was above the Street estimates. The special trading session was held to ascertain the share price of the demerged financial unit of Reliance Industries.
Reliance Industries demerged its financial services undertaking into RSIL (Reliance Strategic Investments Ltd), which was renamed as JFSL.
Jio Financial Services will be listed on 18 other indices, including the Nifty 100, Nifty 200, and Nifty 500, according to National Stock Exchange.