It's been a disappointing stock market debut for Ambani-led Reliance¡¯s Rs 1.65 lakh crore financial arm Jio Financial Services today.?Shares of the recently-demerged company were?listed at Rs 265 on BSE and Rs 262 on NSE but then fell.
Jio Financial Services is the first listing from the Mukesh Ambani-led Reliance group in the last two decades. Minutes after the listing, the stock fell 5% to Rs 248.9 on NSE as traders booked profits in the NBFC stock.? Meanwhile, a disappointing debut for its financial arm has also pulled down Reliance Industries shares, which are down 1.2% today.
At a market capitalisation of Rs 1.65 lakh crore ($20 billion), Reliance's demerged financial arm is the 33rd most valuable company in India and the third largest NBFC after Bajaj twins - Bajaj Finance and Bajaj Finserv, as per an?ET report.
Mukesh Ambani had earlier said in his message to shareholders that?Jio Financial Services is positioned uniquely to capture the growth opportunities in the financial services sector and play a crucial role in transforming the landscape of digital finance in India.?Jio Financial Services Limited along with its subsidiaries will leverage the technological capabilities of Reliance and digitally deliver financial services, democratising access to financial services offerings for Indian citizens,
Last September, Reliance Industries said it has decided to spin off?its fast-growing digital fintech division Jio Financial Services (formerly Reliance Strategic Investments) to create value for shareholders. Accordingly, it sought shareholders¡¯ approval and in May this year and shareholders and creditors approved the spin-off of Reliance Strategic Investments Ltd, which was renamed Jio Financial Services. The National Company Law Tribunal (NCLT) in June gave the final approval.
The ratio for demerger was set at 1:1. So, for each share held in Reliance Industries as of the record date (i.e. July 20), one share of Jio Financial Services was decided to be credited, as per an?HBL report.?
Also Read:?Disappointment For India¡¯s Biggest IPO Investors! LIC Shares Open Listing At More Than 8% Discount
Amid a lukewarm debut on the stock exchanges today morning, Jio Financial Services' chairman KV Kamath has said that?Reliance Industries¡¯ demerged financial lending arm will be an important player in India¡¯s financial services sector.??He said Jio Financial Services (JFS) will seek to optimise all that India provides.
Also, earlier this year, Reliance Industries appointed Hitesh Sethia, a top executive from McLaren?Strategic Ventures, as the CEO and Managing Director of Jio Financial Services.
Also Read:?Not Mukesh Ambani, These Two Brothers Are Reliance¡¯s Highest-Paid Employees At Rs 25 Crore Each
For the latest and more interesting financial news, keep reading Indiatimes Worth.?Click here.