Selling by funds spoils Jio Financial market debut

Jio Financial Services Ltd remained frozen at the 5% lower circuit on Monday after a tepid listing, in line with market expectations that passive funds tracking indices such as the Nifty and the Sensex will sell almost 150 million shares on its imminent exit from benchmark indices.

- Ram Sahgal

However, analysts said the stock would likely turn attractive once the near-term pricing pressure abates, thanks to its ability to leverage the ₹1 trillion of net worth bestowed in the form of Reliance Industries Ltd (RIL) treasury stock that emanates from the 2002 merger of Reliance Petroleum Ltd with RIL.

The stock plunged to hit the 5% lower circuit at ₹248.9, shortly after listing at ₹262 on National Stock Exchange (NSE), a tad above its discovered price of ₹261.85 on 20 July, the date of the demerger. The listing on BSE was slightly higher, at ₹265. But here, too, the stock hit the 5% lower circuit of ₹251.75 shortly after listing and remained frozen at that level.