Rocky debut for Jio Financial Services as shares dive 5% on opening day
Jio Financial Services Limited saw a tumultuous stock market debut, with its shares plummeting 5% on the opening day, triggering a trading halt.
On its debut day in the stock market, Jio Financial Services Limited (JFSL) saw a 5% drop, triggering the lower circuit, after opening at Rs 265 apiece.
JFSL shares debuted at Rs 265 on the BSE and Rs 262 on the National Stock Exchange (NSE). However, within an hour of trading, their prices tumbled to Rs 251 on BSE and Rs 248.90 on NSE, hitting the lower circuit and suspending trading for the security.
In July, JFSL, the demerged financial services unit of billionaire Mukesh Ambani-led conglomerate Reliance Industries took the market by surprise after its share price touched Rs 261.85 per share on NSE—much higher than analysts' estimate. The company's valuation was approximately $20 billion.
With this market capitalisation, JFSL Limited now ranks as the third-largest financial services company in India, trailing behind Bajaj Finance and Bajaj Finserv.
Reliance has entered into a joint venture with financial services giant BlackRock, with each company making an initial investment of $150 million.
Although JFSL was initially listed on major benchmark indices such as Nifty 50 and Morgan Stanley's MSCI India Index, it is set to be removed from these indices on its third day of listing.
Edited by Affirunisa Kankudti