Shares of Jio Financial Services (JFSL), which recently demerged from parent Reliance Industries (RIL), will get listed on stock exchanges on August 21. Shares of the NBFC were credited to demat accounts of eligible RIL shareholders last week in 1:1 ratio, which means that for every RIL share held as on the record date of July 20, shareholders got one share of JFSL.
BSE said the scrip will be in Trade-for-Trade segment for 10 trading days and will trade from this Monday with the symbol of JIOFIN.
As part of a special price discovery session held on the record date, the stock’s pre-listing price came out to be Rs 261.85 per share, which was much higher than the brokerage estimate of around Rs 190 and RIL’s cost of acquisition of Rs 133.
The NBFC’s market capitalisation, therefore, came to Rs 1.66 lakh crore or about $20.3 billion. At this valuation, it is now the second-largest NBFC in India and the 32nd most valued company in India, bigger than giants like Tata Steel, Coal India, HDFC Life and SBI Life. Bajaj Finance now has a market cap of Rs 4.2 lakh crore.
Upon listing on stock exchanges, JFSL will take over the No.2 slot ahead of Cholamandalam Investment and Finance which is presently the second largest NBFC with an m-cap of Rs 83,000 crore.
JFSL will now be bigger than Bajaj Holdings & Investment, which is a holding company, SBI Cards, Shriram Finance, Muthoot Finance and even fintech payments platform Paytm.
JFSL has been included in the Nifty50, BSE Sensex and other indices, and will remain at a constant price till the time the stock is listed independently. The stock will be removed from all indices T+3 day which is August 24.
Jio Financial was included by the index aggregator in several indices on July 20, with a share issue of 6,765,591,509 and an investability weighting of 49.66%.
JFSL plans to launch a consumer and merchant lending business based on proprietary data analytics to complement and supplement the traditional credit bureau-based underwriting. It has already announced a 50:50 joint venture entity with BlackRock to enter the mutual fund industry.
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