Jio Financial Services Ltd Independent Director and non-Executive Chairman K.V. Kamath and BSE Chairman Subhash S Mundra during the listing ceremony of Jio Financial Services. (PTI)
Jio Financial Services Ltd Independent Director and non-Executive Chairman K.V. Kamath and BSE Chairman Subhash S Mundra during the listing ceremony of Jio Financial Services. (PTI)

Jio Financial shares hit lower circuit for 2nd straight day, m-cap falls to Rs 1.51 lakh cr

The stock declined 5 per cent to Rs 239.20 apiece on the BSE and Rs 236.45 apiece on the NSE on Tuesday.

MUMBAI:  Shares of Jio Financial Services (JFS) plunged 5% to hit the lower circuit for the second consecutive day, eroding its market capitalisation to Rs 1.51 lakh crore from Rs 1.70 lakh crore on Monday. Even as the share fell back-to-back on Monday and Tuesday,  the removal of JFS from all key indices of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) was deferred. The stock declined 5% to Rs 239.20 apiece on the BSE and Rs 236.45 apiece on the NSE on Tuesday.

Since the stock has hit a lower circuit limit for two consecutive days, the index committee has determined to postpone the removal of JFS from all S&P BSE indices by another three days, Asia Index Private Limited, a 50-50 partnership between S&P Dow Jones Indices and BSE, said in a notice to BSE on Tuesday. JFSL will be removed from all the S&P BSE indices effective prior to the opening of trading on Tuesday, August 29, 2023, it announced.

“Should JFSL continue to hit the lower circuit in the next two days, the removal date will be deferred by another three days,” the notice added. It further said should JFS not hit the lower circuit limit on either of the next two days, but hit the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE indices will be deferred by another three days.

Meanwhile, in a positive development for the company, Life Insurance Corporation (LIC) on Tuesday said it has acquired a 6.66% stake in JFS. The cost of acquisition of JFS is 4.68% of the pre-demerged cost of Reliance Industries, said the country’s largest insurer in a statement. LIC holds a 6.49% stake in Reliance Industries as of June 30, 2023. The BSE Sensex has Jio Financial as the 31st firm and the Nifty has the company as its 51st stock.

JFS was added to key indices on July 20 for a temporary period, to give passive and active funds holding RIL stock, an opportunity to trade in the demerged entity. It was added at a constant price of Rs 261.8, which was derived through a special pre-open session conducted by the exchanges on RIL stock. JFSL shares were listed at Rs 265 per share on the BSE and Rs 262 per share on the NSE Monday against the discovered price of Rs 261.85 apiece.

Removal of JFS from all key indices deferred

Even as the share fell back-to-back on Monday and Tuesday,  the removal of JFS from all key indices of the BSE and the NSE was deferred. The index committee has determined to postpone the removal of JFS from all S&P BSE indices by another three days

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