Life Insurance Corporation announced on Tuesday that it has acquired a 6.660% stake in Jio Financial Services, the consolidated financial institution of Reliance Industries that went public on Monday.
The insurer said that the cost of acquisitions made through the split of the non-bank financial institution was 4.68% of Reliance Industries’ pre-merger costs according to the company’s July 19 announcement.
Meanwhile, shares of Jio Financial Services (JFS) fell in the first trading session after listing on Monday. Shares are listed at Rs 265 per share, 1% higher than the starting price of Rs 261.85 on July 20, the date of the separation of the company. The total market capitalization of JFS has been adjusted to less than Rs 1.6 lakh crore from over Rs 1,68 lakh when trading commenced.
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JFS shares are allowed to trade in class ‘T’ securities on the BSE, meaning no intraday trading is allowed.
Additionally, JFS stock hit its lower circuit limit for the second straight session on Tuesday. Its shares were locked at a 5% lower circuit limit of Rs 239.20 on BSE. In the previous session, the stock also fell 5% from its spot price of Rs 261.85.
Offshore brokerage CLSA noted that in addition to its stake in Reliance Industries, $2.5 billion worth of liquidity has been merged into JFS to be able to support a loan of $13-15 billion.
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