Jio Financial Services’ share price gained sharply in early trade on Wednesday, carrying on the strong momentum seen in the previous session. Jio Financial Services shares were locked at a 5 per cent upper circuit of Rs 232.70 apiece on the BSE. On NSE, JFSL shares were also at a 5 per cent upper circuit limit at Rs 231.25 apiece, becoming the top Nifty gainer.
The stock was supposed to be excluded from stock indices soon but due to the upper circuit limit, the exclusion is likely to be postponed.
According to ET Now report, promoter entity Jamnagar Utilities and Power, a step-down unit of Reliance Industries (RIL), likely bought about 5 crore Jio Financial Services shares at Rs 208-211 apiece.
Even on Tuesday, JFSL shares gained on reports of a block deal wherein around 0.8 per cent equity of the company was traded.
Meanwhile, Motilal Oswal Mutual Fund had acquired 3.72 crore shares, or 0.6 per cent stake, of Jio Financial Services via an open market transaction on August 25. The shares were bought at Rs 202.8 apiece for a transaction value of Rs 754 crore.
Jio Financial is in news these days, as the company plans to consolidate its payments infrastructure with offerings for both consumers and merchants. Besides, the company is looking to enter the insurance segment to offer life, general and health insurance products. The company has presence in AMC business via partnered with BlackRock.
At RIL’s 46th AGM, Chairman and Managing Director Mukesh Ambani called Jio Financial as the fourth growth engine. He said JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC.
“They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times. JFS will enter the insurance segment to offer simple, yet smart, Life, General, and Health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way,” Ambani said.
Ambani said JFS has been conceptualised to fill a critical gap in the financial services needs of a large section of the Indian economy, mainly in the informal and underserved sectors in rural, semi-urban, and urban areas. He cited the joint venture with BlackRock to set up an asset management business, which he said will provide simple and trustworthy investment solutions. The JV will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable, and innovative investment solutions, he said.
“Just like Jio and Retail, JFS too will prove to be an invaluable addition to the Reliance ecosystem of customer-facing businesses,” Ambani said.
The digital-first architecture of JFS will give it an unmatched head start to reach millions of Indians, Ambani said adding that as it is a highly capital-intensive business, RIL has provided JFS with a strong capital foundation to build trusted financial services enterprise and achieve rapid growth.
“Reliance has capitalised JFS with a net worth of Rs 1,20,000 crore to create one of the world’s highest capitalised financial service platforms at inception. JFS is blessed with a very strong board, led by Shri K.V. Kamath, a veteran and most respected banker. A highly motivated leadership team is being built with a combination of financial industry experts and young leaders who are eager to take on big challenges,” Ambani noted.
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