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Life Insurance Corporation of India (LIC) has secured 6.66% holding in Jio Financial Services Ltd. consequent to the demerger of the financial services business of Reliance Industries.

It was an investment function and the shares were acquired through the demerger. The cost of acquisition was 4.68% of the demerged cost of Reliance Industries, LIC said on Tuesday, in a filing to the stock exchange, even as Jio Financial Services shares for the second consecutive day, post listing, fell 5% triggering the lower circuit.

On NSE, Jio Financial Services shares closed 5% lower to ₹236.45 apiece, while on BSE they ended 4.99% lower at ₹239.20 each. On Monday, the shares listed at ₹262 on NSE and ₹265 on BSE, closing 5% lower.

Jio Financial Services, the demerged financial services unit of Reliance Industries, had a volatile market debut on Monday. Shares of Jio Financial Services hit the lower circuit after slipping 5 per cent to a low of Rs 248.90 apiece. On BSE, the company’s shares were trading 5 percent lower at 251.75 apiece at 1:53 PM.

Jio Financial Services Ltd (JFSL) demerged from Reliance, months after the formal announcement of the move in October last year. 

“Trading members of the exchange are hereby informed that effective from Monday, August 21, 2023, equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the exchange in the list of T Group of securities,” BSE said in a notice on Friday.

BSE said that the scrip will be in the trade-for-trade segment for 10 trading days.

As per the demerger norms, the governing body of Jio Financial Services distributed a total of Rs 635.32 crore shares with a nominal value of Rs 10 each to qualified stakeholders of Reliance Industries. Shareholders of Reliance Industries were allocated shares at 1:1 ratio. This implies for each share of Reliance Industries held, as on July 20, every shareholder was granted one share of Jio Financial Services. 

During a one-hour special trading session on July 20, shares of Jio Financial Services traded at Rs 261.85 apiece, which was above the Street estimates. The special trading session was held to ascertain the share price of the demerged financial unit of Reliance Industries.

Reliance Industries demerged its financial services undertaking into RSIL (Reliance Strategic Investments Ltd), which was renamed as JFSL.

Jio Financial Services will be listed on 18 other indices, including the Nifty 100, Nifty 200, and Nifty 500, according to National Stock Exchange.

New Delhi:

Shares of Jio Financial Services, the demerged financial services unit of Reliance Industries, listed on the bourses on Monday, with the stock falling nearly 5 per cent on the NSE later in the trade.

On the BSE, shares of the company began the trade at Rs 265, up 1.20 per cent against Rs 261.85, the price fixed at a special price discovery session held last month. However, the stock later fell by 3.85 per cent to hit Rs 251.75 — its lower circuit limit — against Rs 261.85.

Shares of the company listed at Rs 262 on the NSE but later declined 4.94 per cent to Rs 248.90 — its lower circuit limit.

The company commanded a market valuation of Rs 1,59,943.93 crore in morning deals.

Jio Financial Services Ltd (JFSL) demerged from Reliance last month.

In a special price discovery session held on the record date last month, the stock’s pre-listing price came out to be Rs 261.85.

“Trading members of the exchange are hereby informed that effective from Monday, August 21, 2023, equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the exchange in the list of T Group of securities,” BSE said in a notice on Friday.

The scrip will be in the Trade-for-Trade segment for 10 trading days, it had said.

Reliance Industries demerged its financial services undertaking into RSIL (Reliance Strategic Investments Ltd), which was renamed as JFSL. Shareholders got one JFSL share for each Reliance share they held.

In the equity market, the 30-share BSE Sensex was trading with a gain of 236.55 points at 65,180.58. The NSE Nifty rose 67.90 points to 19,378.05.