Jio Financial Services stock listing today. JFS share exclusion date from Nifty, Sensex & more

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Jio Financial Services stock listing today. JFS share exclusion dates from Nifty, Sensex & more

Jio Financial Services (JFS), the demerged financial business of Reliance Industries, whose shares got credited to eligible shareholders last week, will make its stock market debut on Monday. The discovered share price for JFS based on the record date of the corporate event was Rs 261.85, which was much higher than the Street estimates of Rs 160-170 share price. It would be seen how the stock reacts at listing today.

The demerged financial services arm would unlock value for RIL shareholders and "give them an opportunity to be a part of a new growth platform," RIL recently said in its annual report.

Jio Financial Services Ltd... via 

https://www.businesstoday.in/stocks/jio-financial-services-ltd-share-price-393845?utm_source=btweb_share

After spin-off from Reliance Industries Limited (RIL), Jio Financial Services share price listed on BSE and NSE during Monday session. However, JFSL shares had a muted listing in Indian stock market as Jio Financial Services share price opened at ₹265 on BSE and at ₹262 on NSE, which is at par with its market value of ₹261.85 (ascertained on JFSL record date). However, pain for shareholders didn't end here and it went down further and hit intraday low of ₹248.90 on NSE and ₹251.75 on BSE — hitting 5 per cent lower circuit on both exchanges.

According to stock market experts, fair value of Jio Financial Services share price comes around ₹180 apiece levels and market is expected to discount further as the stock is still trading at much higher price than its fair value. They said that on the basis of fair value of the company, market cap of Jio Financial Services Ltd would be around ₹1.10 lakh crore to ₹1.15 lakh crore. So, those who have JFSL shares in their portfolio are advised to book profit on any rebound in the stock and re-enter around ₹180 apiece levels.

On why Jio Financial Services share price is nosediving after muted listing, Vaibhav Kaushik, Research Analyst at GCL Broking said, "Crash in Jio Financial Services share price was expected as the stock was available at much higher price of its fair value. But, market was expecting this to happen after touching ₹330 to ₹340 levels. But, it seems that index funds have decided to book profit instead of waiting for other institutional investors move."

Jio Financial Services share price

GCL Broking expert went on to add that fair value of the newly listed stock suggests that its market cap would come down to the tune of ₹1.10 lakh crore to ₹1.15 lakh crore. In that case, Jio Financial Services share price would fall around ₹180 apiece levels. He advised JFSL shareholders to exit in any rebound in the scrip.

Speaking on Jio Financial Services share listing, Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal said, "Those who got Jio Financial Services shares through allotment, they are advised to hold the stock with stop loss at ₹232 apiece levels."

The equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) has been admitted to dealings on the Exchange in the list of T Group of Securities. Jio financial Services Ltd share price will be in Trade-for-Trade segment for 10 trading days.

Jio Financial will be spun out of Reliance on Thursday.
How will it Happen.?

✅ 10 points for you to Know.:

1. The Record Date to determine who is eligible to get Jio Financial Svcs shares is July-20, i.e Thursday.
2. RIL had earlier announced the demerger of Jio Financial Services for a ratio of 1 equity share of Jio Financial for 1 Fully paid-up equity share held in RIL.
3. Since Jio Financial is being spun out of RIL, the share price of RIL will have to be adjusted accordingly.
On Thursday morning, RIL will have a special price discovery session.
4. How will it work?
To use an example,
a) Suppose RIL is at `900 in spl session on Thursday
b) And, RIL closed on Wednesday, at `1000
c) Spun off biz, JFS, will be at `100 (`1000-`900)
5. Jio Financial will be included in the indices, including Nifty 50, at Rs.100, and it will stay there, at the constant price of Rs.100, till Jio Financial is listed.
So temporarily, Nifty 50 will have 51 stocks.
PS - The date of Listing is not known yet.
6. Once Jio Financial stock is listed, it will be removed from the Index 3 days after its listing - Subject to certain Price conditions - if it is in Circuit for more than 3 days.
7. A word on the F&O impact for RIL - all F&O contracts will expire a day prior to the record date, ie. on July-19.
8. Lastly, how is the Street valuing Jio Financial right now.?
Well markets are currently ascribing value to only the treasury stake of RIL that Jio Financial would own. Analysts put this value at Rs.160-200/share.
9. On listing, Jio Financial is expected to be Fourth largest institutions of India.. it will be competing with PayTM, Bajaj Finance, etc.
10. Markets also expect the upcoming AGM to focus on Jio Financial Services.
-Source unknown

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.