• On August 23, exactly two days after its initial public offering (IPO), Jio Financial Services had the obligation to delist.
• Jio Financial Services, which was planned last year, prioritizes a focus on loans, insurance, payments, and investments.
• On August 31, the stock strengthened for the third straight day, ending the day at a 4-5% higher circuit than where it entered at INR 242.50 a share.

OVERVIEW:

MSCI and FTSE indices, in contrast, will continue to include Jio Financial Services without affecting inflow or outflow. Chairman Mukesh Ambani stated that JFS will have products in the payments and insurance areas in India in addition to being in the asset management business at Reliance Industries’ 46th Annual General Meeting on August 28.

In payments, JFS will consolidate its payment infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital adoption, said Ambani, adding that JFS products will compete not only with current industry benchmarks but also with cutting-edge features like blockchain-based platforms and the central bank digital currency (CBDC).

After RIL announced the demerger of its financial services division and the spin-off of Reliance Strategic Investments as Jio Financial Services, JFS was established last year. Prior to the delisting announcement, Ambani asserted that JFS had attained the status of being the financial services platform with the largest initial capitalization in the world. The business’s primary business lines are loans, insurance, payments, and investments.

The financial business of Reliance Industries, Jio Financial Services, will no longer be listed on the BSE as per the index’s announcement on August 31:

After its initial public offering on August 21, 2023, but before trading commenced on the 1st of September 2023, Jio the financial services sector Ltd. will be delisted from all S&P BSE equity indices allegedly to the BSE. Due to its departure from parent business Reliable Industries, this has happened.

The stock was initially scheduled to be delisted on August 23, two days following its IPO. Jio Financial Services was still unable to leave the lower circuit, so the exchanges decided to delay the delisting. The stock increased for the third session in a row on August 31, closing at an upper circuit of 5% and hitting INR 242.50 a share. According to Nuvama Alternative Research, JFS makes up 1.1% of the Sensex’s weight, which might result in the passive sale of nearly 60 million shares, or $180 million, in total.

Jio Financial won’t be taken out of the Nifty indexes, according to Nuvama, until it avoids price limitations (upward or downward) for two days in a row. According to the research company, Nifty won’t acknowledge the exclusion with a press release until it has gone two days without a price band breach. They won’t exchange messages during this time.

Shares of Jio Financial Services continue to rise and are stuck at the 5% upper circuit:

After splitting from Mukesh Ambani’s giant Reliance Industries, which has holdings in everything from telecom to oil, Jio Financial Services was listed on the stock markets on August 21. The stock was listed at BSE and NSE share prices that were higher than its discovery price of 261.85, at 265 and 262, respectively. Institutional investors have pushed for the share sale ever since the company’s establishment.