Table of Contents
Introduction
The eagerly anticipated debut of Jio Financial Services (JFSL), a subsidiary of Reliance Industries Ltd (RIL), on the Indian stock exchanges is set to occur on Monday, August 21. This announcement comes after a significant pre-open call auction session that transpired on July 20, during which the share price for Jio Financial Services was established at Rs 261.85 per share on the NSE.
Grey Market Premium and Market Outlook
Market insiders have divulged that Jio Financial Services currently commands a noteworthy grey market premium (GMP) ranging between ₹50 to ₹54. This substantial premium hints at a market capitalization that exceeds ₹2 lakh crore. In line with this, financial analysts are predicting an opening stock price to hover within the range of ₹315 to ₹325, further adding to the excitement surrounding the company’s stock market debut.
Jio Financial Services (JFSL)’ Last-Minute Entry
A remarkable twist in the tale unfolded just a day prior to the scheduled removal of Jio Financial Services from FTSE Russell indices. Despite the looming threat, Jio Financial Services managed to secure its place in the stock exchange arena. The Bombay Stock Exchange (BSE) officially conveyed the decision, stating that starting from August 21, 2023, the equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) will be listed and traded on the exchange under the T Group of Securities.
FTSE Russell’s Change of Plans
Recent headlines were made when FTSE Russell, a globally renowned benchmark provider, announced the removal of Jio Financial Services from their indices. The reason behind this decision was the company’s failure to commence trading within the stipulated 20 business days since its inclusion on July 20. The slated removal was set to take effect from August 22 due to the absence of a fixed trading date despite its initial inclusion.
FTSE Russell’s Reversal
In a turn of events, the official announcements made by both the BSE and NSE regarding the commencement of Jio Financial shares (JFSL)’ trading on August 21 led FTSE Russell to reconsider its decision. Consequently, FTSE Russell reversed its initial plan to remove Jio Financial Services from its global indices.
According to FTSE, Jio Financial’s total share issuance remains consistent at 6,765,591,509, maintaining an investability weighting of 49.66% within the FTSE All-World index.
Official Statement by FTSE Russell
FTSE Russell issued a formal statement addressing the situation. The statement confirmed that due to the latest exchange information disclosed on August 18, 2023, which stated Jio Financial Services’ listing date as August 21, 2023, the company would no longer be removed from the indices effective from August 22. The unchanged share in issue total of 6,765,591,509 and the consistent investability weighting of 49.66% were emphasized in the statement.
Current Status and Share Distribution
Presently, Jio Financial Services is listed under a placeholder ticker, and trading activities for this particular security are yet to commence. The distribution of Jio Financial Services shares was executed based on a one-to-one ratio for eligible RIL shareholders, determined by the record date of July 20.
Surpassing Expectations
The assessed value of each Jio Financial Services share, which was set at ₹261.85 on the NSE following the specialized pre-open call auction session held on July 20, has notably exceeded the initial projections made by analysts. These projections initially ranged from ₹125 to ₹225, surpassing Reliance Industries Ltd’s acquisition cost of ₹133 per share. This performance indicates a promising start for the newly listed company in the stock market.
