Jio Financial shares hit 5% lower circuit on market debut

MUMBAI: Shares of Jio Financial Services, which was spun off from Reliance Industries in July, fell nearly 5% on Monday at its trading debut.

The stock hit the 5% lower circuit - the most it can fall in a day - to close at Rs 252 on the BSE. The stock is likely to have faced selling pressure from passive funds ahead of its exclusion from indices including the sensex and Nifty after three trading days, analysts said.

"The listing was below street expectations. Jio Financial will face short-term selling pressure as the street has assumed the fair value of the shares to be Rs 150-180 apiece," Prashanth Tapse of Mehta Equities said.

After a 1-hour trading session last month, Jio Financial shares were priced at Rs 262 apiece - giving the company a valuation of nearly Rs 1.7 lakh crore. Even after the fall in stock price, Jio Financial, at Rs 1.6 lakh crore, is the second-most valued NBFC in India, behind Bajaj Finance. Jio Financial was temporarily added to the sensex and Nifty to reduce volatility.


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