Life Insurance Corporation said on Tuesday that it has acquired 6.66% shareholding in Jio Financial Services, which is the demerged entity of Reliance Industries and made its debut on Dalal Street on Monday.
The insurer said that the cost of the acquisition done through the demerger of the non-banking financial entity is 4.68% of the pre-demerged cost of Reliance Industries as per the notice of the company dated July 19.
On the other hand, shares of Jio Financial Services hit the lower circuit in its maiden trading session after listing on Monday. The stock fell by another 5% on the second day, Tuesday, of its trading on the exchange market.
The stock was listed at Rs 265 per share, a marginal premium of over 1% over its derived price of Rs 261.85 on July 20, the date of the company’s demerger.
Its shares were locked at 5 percent lower circuit limit of Rs 239.20 on BSE. In the previous session too, the shares were down 5% from the discovered price of Rs 261.85.
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Foreign brokerage CLSA noted that other than a stake in Reliance Industries, liquids worth $2.5 billion have been demerged into JFS that could support a loan book of $13-15 billion.
JFSL shares have been admitted to dealings on the exchange in the list of T group of securities and the stock 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.
As per the exchanges, JFSL shares will be removed from all indices after three days of listing. According to a report by Livemint, the weakness in Jio Financial Services shares comes amid selling by passive funds tracking indices such as the Nifty and the Sensex.