Mukesh Ambani’s Jio Financial makes disappointing debut on BSE, NSE

Mukesh Ambani’s Jio Financial Services (JFS), the financial services unit of Reliance Industries, made a disappointing debut on the indices on Monday.

The JFS stock hit the lower circuit – dropped enough to hit the 5 per cent lower bar at INR248.9, shortly after listing at INR262 on National Stock Exchange (NSE).

#Listing #Live #JioFinancial https://t.co/iHWxf2ysiV

— Jio Financial Services (@jiofinser) August 21, 2023

The listing on Bombay Stock Exchange was slightly higher, at INR265. However, the stock hit the 5 per cent lower circuit of INR251.75 shortly after listing and remained frozen at that level through the day, reported MoneyControl.

The listing on NSE showed a sell quantity of 209,900 shares at INR248.9, which found no takers at that price, while that on BSE showed a sell quantity of 131,738 shares at a price of INR251.75, which did not show any movement either.

Despite the stock trading low on its debut, its market cap of INR1.58tn makes Jio Financial India’s third most-valued non-banking financial company (NBFC), reported Bloomberg.

Jio Financial hopes to shake up NBFC market

Jio Financial has said it plans to digitally deliver a range of products in the NBFC market – including consumer, merchant, MSME loans, payments solutions, insurance, and AMC (asset management company) services.

It recently announced a joint venture with global financial firm BlackRock with an initial investment of $150m each.

Jio Financial Services is positioned to compete with the likes of Bajaj Finance and Bajaj Finserv, Cholamandalam Investment and Finance, and SBI Cards and Payment Services. While it is a new entrant in the market, it will be able to leverage Reliance Industries’ presence in telecom, digital, and retail businesses to begin to capture market share.