The stock with the symbol JIOFIN will trade in the T Group segment on both BSE and NSE for the initial 10 days. Circuit limits of 5% will be in place to control significant movement in the new stock.
Handover of $20 billion to RIL Shareholders.
In a significant move to benefit shareholders of Reliance Industries (RIL), the newly-separated company Jio Financial Services (JFSL) has been listed on stock exchanges. The stock started trading at around Rs 265 on BSE and Rs 262 on NSE, close to the price of Rs 261.85 per share. For the initial 10 days, the stock with the symbol JIOFIN will be traded in the T Group segment on both BSE and NSE. To prevent extreme fluctuations, there will be a 5% upper and lower circuit limit in place.
Will the listing benefit JFSL Investors?
Traders who bought RIL stock for a special opportunity to get JFSL shares are eagerly waiting to sell on the listing day if they can make a profit. This might limit the price increase. There could be selling pressure from these traders and also from RIL shareholders who don’t want NBFC stock.
If RIL shareholders got Jio Financial shares due to the split, it’s a good idea to keep them for a while. Jio Financial has a promising business model and can benefit from the growing demand for financial services in India. But keep in mind that the stock might not be easy to buy or sell right now, which could make the price change a lot in the short term.
Opinions of Different Analysts?
Different experts have different views about Jio Financial Services. Some are hopeful because there’s a big need for financial services in India and the company has a strong background. But others are more careful.
Apurva Seth from SAMCO Securities said that people shouldn’t expect big changes in the next few years. He suggested that only those who plan to keep the stock for more than 5 years should do so. Others might be better off selling their JFSL shares and buying stocks from a bank or NBFC that’s already doing well.
What will be the future outlook?
The future looks positive for Jio Financial Services Limited (JFSL) in the long run. It’s becoming an independent financial company that will provide various services like lending, insurance, payments, and more.
It’s even teaming up with BlackRock for mutual funds, which could change India’s asset management sector. But, since the financial industry already has strong players, it might take some time for JFSL to fully establish itself and compete.
Conclusion
In conclusion, Jio Financial Services has started trading as a separate entity from Reliance Industries. This move is expected to unlock value for RIL shareholders. Alongside this, Ambani’s decision to hand over $20 billion to RIL shareholders adds to the overall positive sentiment. These developments offer investors opportunities to explore new avenues in the financial sector while benefiting from Reliance’s expansion strategies.
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