About a month ago, special trading was organized on the record date of 20 July. In which the pre-listing price of Geo Financial was Rs 261.85 per share. This price was above the brokerage estimate of around Rs 190 and RIL's acquisition cost by Rs 133.
After separating from the country's largest company Reliance Industries last month, the shares of Mukesh Ambani's Jio Financial Services or JFSL will be listed on the stock exchanges BSE and NSE on Monday i.e. today. Ahead of the listing, the shares of the digital-first NBFC are trading at around Rs 300 in the gray market, higher than the pre-listing price of Rs 261.85.
For the first 10 days, JFSL will trade in the T group segment, which means that intraday trading will not be possible in the stock and there will be a circuit limit of 5 per cent on either side. Apoorva Sheth of Samco Securities said, this will put a stop to the big rally in the stock. He said in the media report that we expect that there may be some selling pressure as investors who would have bought shares to get benefit from the demerger can book profits.
One share was received in lieu of Reliance's share
In special trading on the record date of July 20, the pre-listing price of Jio Financial came out to Rs 261.85 per share, which was above brokerage estimate of around Rs 190 and RIL's acquisition cost by Rs 133. The shares of the NBFC were deposited in the demat accounts of eligible RIL shareholders last week in the ratio of 1:1, which means that for every RIL share held till the record date of July 20, shareholders got one share of JFSL.
What are the locker objections to the company
While some analysts are pinning their hopes on the strong demand for financial services in India and the company's strong hold, on the other hand, some experts are quite cautious. According to Sonam Srivastava, Founder and Fund Manager, Wright Research, his objections are based on the fact that Jio Financial is still in its nascent stage and has not yet achieved profitability. Sonam Srivastava suggests that RIL shareholders who have acquired Jio Financial shares due to the demerger should keep them for the long term.
Advice to hold shares for long term
According to Apoorva Sheth, investors should not expect any miracle from Jio Financial in the short and mid term. Sheth says that investors who can wait should keep these stocks with them for at least 5 years. JFSL has already announced a 50:50 joint venture with Linpr Blackrock to enter the mutual fund industry. BlackRock's global fund management expertise combined with Jio's tech power and expanded customer group can reshape India's asset management industry, valued at Rs 44.3 trillion ($540.4 billion), said Anirudh Garg, Partner and Head of Research, Invaset PMS It is possible.
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