- The scrip will be in the trade-for-trade segment for 10 trading days, says a BSE notice.
- The financial services business of
Reliance Industries was demerged in June. - One shareholder of RIl received one share of Jio Financial Services, as per the scheme
The equity shares of Jio Financial Services shall be listed on the exchanges on August 21, said a notice on Bombay Stock Exchange on Friday. The scrip will be in the trade-for-trade segment for 10 trading days.
“Members are requested to note that the above security will be a part of a special pre-open session for IPO and Other category of scrips as per SEBI circular,” BSE said in its notice.
The company was demerged from the parent company
As many as 635 crore equity shares of ₹10 each have been allotted pursuant to scheme of arrangement, the notice said. The shares have been credited to the demat accounts of RIL shareholders last week, as per media reports.
In 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, valuing the company at Rs 1.66 lakh crore or about USD 20.3 billion.
At this valuation, it is now the second-largest NBFC in India and the 32nd most valued company, bigger than giants like Tata Steel, Coal India, Indian Oil, and SBI Life.
Bajaj Finance is the biggest NBFC with a market cap of Rs 4.15 lakh crore and JFSL will be second to it ahead of Bajaj Holdings, SBI Cards, Shriram Finance, Muthoot Finance and Paytm.
The synergies of the parent
Jio Financial Services can gain from the synergies of its parent Reliance Industries’ presence in telecom and retail business — giving it an edge over its competitors. It has access to low funding cost due to better access on the back of the group's high credit rating and ownership of 6.1% stake in RIL.
“In the backdrop of the group's large presence in retail & telecom segments that drive a customer base of 20 million as well as vendor partnerships, JFS' first port of call could be consumer lending (esp. electronics) & merchant financing,” says a brokerage report by Jefferies.
JFS has licenses in broking, asset management, NBFC, insurance, and mutual funds businesses. The consolidated gross revenue for financial services for FY23 stood at ₹890 crore (-57.8% YoY), with EBITDA margins at 56.8% for FY23, said a report by Bernstein.
JFS also brought in former head of Europe at McLaren Strategic Ventures Hitesh Sethia as its CEO and MD. Moreover, former head of ICICI KV Kamath was appointed as its non-executive chairman.
(With inputs from PTI)