Jio Financial Services Shares To Be Listed On Exchange Houses On This Date; Details

Jio Financial Services (JFSL), which got demerged from Reliance Industries (RIL), will get listed on stock exchange on August 21. 

On July 20 eligible shareholders of RIL had got JFSL shares in their Demat accounts in the 1:1 ratio. The stock pre-listing price was Rs 261.85 per share, which came out in a special price discovery session held on the record date. 

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The pre-listing price was reportedly more than the market estimate of Rs 190 per share and RIL's cost of acquisition of Rs 133. The market capitalisation of JFSL is between Rs 1.66 lakh crore ($20.3 billion), which made it the second-largest non-banking financial institution (NBFC) in the country.

JFSL has been included in the Nifty50, BSE Sensex and other indices, and will remain at a constant price till the time the stock is listed independently. The stock will be removed from all indices T+3 days post its listing.

JFSL's latest shareholding pattern shows that the promoters own 45.80% stake of the company, mutual funds 6.27% and foreign institutions 26.44%. 

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The company plans to launch a consumer and merchant lending business based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting. It has already announced a 50:50 joint venture entity with BlackRock to enter the mutual fund industry.

"Jio Financial Services, as a company, is extremely well capitalised. Now it is going to be starting off as one of the largest players in the field. It is going to give the other NBFCs a run for their money. The valuation is pretty much on its side. This is a good time because credit growth is just picking up, consumer financing is very strong, and the margins for the industry are still very healthy," Chakri Lokapriya of TCG AMC, was quoted as saying by The Economic Times.