Jio Financial Services’ share price was locked in at less than 5% lower for the second straight session on Tuesday. Shares of Jio Financial Services are opened at $239.20 each, 5% below the previous closing price of $251.75 pieces on BSE.
On the NSE, shares of Jio Financial Services fell 5% at $236.45 one piece.
Jio Financial Services Limited (JFSL), formerly known as Reliance Strategy Investments Limited, the spin-off financial arm of Reliance Industries, went public on August 21.
JFSL shares are listed in $265 per share on BSE and $262 per share on NSE Monday against the spot price of $261.85 one piece.
However, immediately after listing, JFSL shares fell 5% $251.75 on BSE. On NSE too, it reaches 5% lower price of $248.90.
Read here: Jio Financial Services listed on exchanges today, shares down 5%: What happens next?
JFSL shares have been accepted for trading on the exchange in the list of group T securities and the shares will be in the “Buy and sell to exchange” segment for 10 trading days. Therefore, JFSL shares will not be allowed to be traded during the day. Investors can only make purchases and sales based on delivery for shares of T2T Group.
According to exchanges, JFSL stock will be removed from all indexes three days after listing.
The weakness in Jio Financial Services stock comes amid a sell-off in passive fund-tracking indexes like Nifty and Sensex.
Nuvama Wealth Management analyst Abhilash Pagaria estimates that passive funds that track Nifty could sell about 90 million shares worth about $290 million, while passive funds that track Sensex could sell around 55 million shares. coupons worth about $175 million.
Also read: Fund sale spoils Jio financial market launch
“JFSL’s valuation is based on expectations around future growth potential and the 6.1% stake it owns in RIL. JFSL’s future growth prospects are indeed bright as it is able to scale its business significantly thanks to its tremendous connections with consumers and merchants. But institutional selling will be a drag on stock prices in the near term. VK Vijayakumar, director of investment strategy at Geojit Financial Services, said that because the stock is in the T-segment, institutional selling is dragging down prices.
After listing, the market capitalization of Jio Financial Services stands at $1.58 lakh crore, becoming the second largest non-banking finance company (NBFC) in the country after Bajaj Finance.
At 10:00 a.m., shares of Jio Financial Services fell 5% at $239.20 on BSE, with a market cap of $1,51,970 cores.
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Updated: Aug 22, 2023, 10:07 a.m. IST
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