Jio Financial Services lists on NSE at ₹262 and on BSE at ₹265

Basic details of Jio Financial Services Ltd listing

The stock of Jio Financial Services Ltd listed on August 21, 2023. It simultaneously listed on the NSE and the BSE. While its listed on the NSE under the code of “JIOFIN,” on the BSE the stock listed under the code “543940”. The ISIN code for Jio Financial services Ltd for all demat holding and transacting purpose is “INE758E01017”. It must be noted here that the stock of Jio Financial will be in the Trade to Trade segment for a period of 10 days from the date of listing, post which it would go to the normal trading segment. One important point to note here is that, unlike as it was announced, FTSE Russell will not be excluding Jio Financial from their indices.

That means; Jio Financial Services will trade in the “BE” segment on the NSE and in the “T” segment on the BSE; which are meant for the trade to trade segment. When a stock in in trade to trade segment, intraday trades or speculative trades are not permitted in the stock. Investors can buy or sell shares only against delivery. Under SEBI regulations as per the circular passed in 2010, any stock where the promoter quota of shares was not entirely in demat mode, had to go only via the Trade to Trade route for a period of 10 days post listing. They could be moved to the normal equity segment after this period.

Capital and holding structure of Jio Financial Services

Before we go to the listing day performance of Jio Financial Services Ltd, a quick look at how the break of the capital structure of Jio Financial Services Ltd looks like. To begin with, Jio Financial Services Ltd will have total outstanding shares to the tune of 635.33 crore shares. Out of this, the promoter and the promoter group hold 290.99 crore shares or 45.80% of the total paid up capital. The balance 344.34 crore shares will be held by the general public, representing 54.20% of the total paid up capital of Jio Financial Services Ltd. This includes individuals, HNIs and also domestic and foreign institutions.

Out of the public shareholdings of 344.34 crore shares, domestic financial institutions (including SEBI registered mutual funds) hold 103.74 crore shares while foreign portfolio investors (FPIs) hold 167.98 crore shares. Small shareholders (classified as retail shareholders) hold about 46.42 crore shares in Jio Financial Services Ltd. The price of Jio Financial Services was discovered at ₹261.85 on the effective date of demerger. That is the base price on which the trading commenced on the NSE and the BSE on August 21, 2023. The ratio of apportionment of cost will be 4.68:95.32 for Jio Financial versus Reliance Industries and this will be used as the base to calculate the capital gains on slae of shares.

Jio Financial Services listing day performance on NSE

The stock of Jio Financial Services (demerged in the ratio of 1:1 from Reliance Industries Ltd), listed on the NSE on August 21, 2023. The listing price on the NSE on August 21, 2023 was ₹262, slightly above the discovered price of ₹261.85 for the stock of Jio Financial Services. However, there was a lot of pressure on the stock as mutual funds and passive funds were selling in the counter as the stock will again be removed from the indices and so there is an adjustment happening on the counter. On the NSE, the stock of Jio Financial Services shares listed at a price of ₹262 per share but closed the day at the 5% lower circuit of ₹248.90. Being in the trade to trade segment, the 5% move is the maximum that is permitted. During the day, the stock of Jio Financial share price touched a high of ₹262.05 and a low of ₹248.90. The high price of the day was just above the opening price while the stock closed the day exactly at the low price of the day.

Let us now turn to the volumes of the stock of Jio Financial Services Ltd on the NSE. On August 21, 2023, the day of listing of the stock, it scaled total volumes of 747.15 lakh shares having total turnover or trade value of ₹1,896.13 crore. Obviously, being a trade to trade stock, the entire volumes for the day of 747.15 lakh shares was accounted for only by delivery trades since intraday traders are not permitted in the counter. At the close of the day, the stock of Jio Financial Services Ltd had an overall market cap of ₹1,58,133 crore with a free float market cap of ₹79,067 crore. The stock closed the day with unfulfilled sell orders of 2.09 lakh shares, which was evident of the selling pressure on the counter during the day.

Jio Financial Services listing day performance on BSE

The stock of Jio Financial Services (demerged in the ratio of 1:1 from Reliance Industries Ltd), also listed on the Bombay Stock exchange (BSE) on August 21, 2023. The listing price on the BSE on August 21, 2023 was ₹265, which is 1.2% above the discovered price of ₹261.85 for the stock of Jio Financial Services. However, there was a lot of pressure on the stock as mutual funds and passive funds (index funds and index ETFs) were selling in the counter as the stock will again be removed from the indices and so there is an adjustment happening on the counter. On the BSE, the stock of Jio Financial Services Ltd listed at a price of ₹265 per share but closed the day at the 5% lower circuit of ₹251.75. Being in the trade to trade segment, the 5% move is the maximum that is permitted. During the day, the stock of Jio Financial touched a high of ₹278.20 and a low of ₹251.75. The high price of the day was well above the opening price while the stock closed the day exactly at the low price of the day.

Let us now turn to the volumes of the stock of Jio Financial Services Ltd on the BSE. On August 21, 2023, the day of listing of the stock, it scaled total volumes of 35.51 lakh shares having total turnover or trade value of ₹91.67 crore. Obviously, being a trade to trade stock, the entire volumes for the day of 35.51 lakh shares was accounted for only by delivery trades since intraday traders are not permitted in the counter. At the close of the day, the stock of Jio Financial Services Ltd had an overall market cap of ₹1,59,944 crore with a free float market cap of ₹84,770 crore. The stock closed the day with substantial unfulfilled sell orders since the selling exceeded the buying at any point during the day. This was evident of the selling pressure on the counter during the day.

Read the previous article on Jio Financial Services to list on 21st August

Brief on Jio Financial Services Ltd

Jio Financial Services, formerly known as Reliance Strategic Investments, was hived off from the Reliance group into a separate entity. Investors of Reliance Industry as on the record date, were allotted 1 share of Jio Financial Services for every 1 share of RIL held to compensate for the hive off. With a market of over ₹1.50 trillion, Jio Financial Services will rank as the second largest listed operational NBFC in India behind Bajaj Finance. We are ignoring Bajaj Finserv as it is a holding company. Jio Financial Services will hold 6.1% in Reliance Industries, as a result of transfer of treasury shares. Jio Financial Services has net worth of ₹28,000 crore.

It must be noted here that Jio Financial Services will be removed from the two benchmark indices after the end of trading on August 24, 2023. That explains the pressure of selling from passive fund on listing day. However, Jio Financial will continue to remain in the two major global indices viz. FTSE Russell and the MSCI Global Standard Index. The legendary KV Kamath will be the non-executive chairman of Jio Financial while Isha Ambani is already on the board in executive capacity. In addition, Hitesh Sethia, formerly of ICICI Bank, is the CEO of Jio Financial Services Ltd.