LIC obtains 6.66% stake in Jio Financial Services through demerger route
In an official filing, LIC said it has secured 6.66% shareholding in Jio Financial Services through the demerger proceedings executed by Reliance Industries Ltd.
Life Insurance Corporation (LIC) has acquired 6.66% stake in Jio Financial Services, which emerged as a non-banking financial services (NBFC) unit following the demerger process from Reliance Industries.
In an official filing, LIC said it secured a 6.66% shareholding in Jio Financial Services through the demerger proceedings executed by Reliance Industries Ltd.
Jio Financial Services was formally listed on the stock exchanges on August 21, and the company's valuation has since reached nearly Rs 1.60 lakh crore. It had a rocky debut as shares dived 5% on opening day triggering the lower circuit, after opening at Rs 265 apiece.
LIC also noted that the expense associated with obtaining Jio Financial Services stands at 4.68% of the pre-demerger valuation of Reliance Industries.
The trading price of Jio Financial Services shares was Rs 239.20 per unit, representing a decline of 4.99% and triggering the lower circuit limit for the second consecutive session on the BSE.
Upon its listing, the scrip debuted at Rs 265 on the BSE, reflecting a 1.20% increase compared to the special price discovery session's value of Rs 261.85 held the previous month. Subsequently, the stock experienced a downturn of 3.85%, reaching Rs 251.75—the lower circuit limit.
In a separate development earlier this month, LIC also reported a substantial surge in net profit for the April-June quarter, reaching Rs 9,544 crore. This figure represented a significant increase compared to the net profit of Rs 683 crore recorded during the same period in the previous year.
Furthermore, LIC announced a robust growth in its total income for the June quarter, reaching Rs 1,88,749 crore, in comparison to the year-ago period's figure of Rs 1,68,881 crore, according to a regulatory filing.
(Additional info has been added to this PTI copy for context.)
Edited by Suman Singh