Jio Financial Services, Reliance's Financial Arm, Set to Make Stock Market Debut on August 21

18 Aug 2023 , 03:07 PM

Jio Financial Services, the financial subsidiary of Reliance Industries (RIL), is scheduled to be listed on the stock exchanges on August 21, as stated in the circular released by the BSE on Friday, August 18. The demerger of Jio Financial Services from its parent company, Reliance Industries, took place recently.

The BSE circular outlined the following information: ‘Effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) will be listed and permitted for trading on the Exchange as part of the T Group of Securities. Additionally, following SEBI circular No. CIR/MRD/DP/02/2012 dated January 20, 2012, the stock will be included in the trade-for-trade segment for a duration of 10 trading days.’

Last month, on July 20, both the BSE and NSE stock exchanges held a one-hour special ‘price discovery’ session for the very first time, aimed at determining the valuation of Jio Financial Services’ shares.

Jio Financial Services will primarily operate in the NBFC market and the credit market segment. The company has strategic intentions to expand its scope into verticals such as insurance, digital payments, and asset management. In a significant development, the company formed a partnership with Blackrock, the world’s largest asset manager, with plans to establish a mutual fund company. This collaboration aims to introduce a new player to the Indian market, with an initial investment target of $300 million.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, conveyed in the company’s 2022-2023 annual report to shareholders that Jio Financial Services is uniquely positioned to capitalize on growth opportunities within the financial services sector. He emphasized its pivotal role in reshaping the digital finance landscape in India. Ambani expressed, ‘Jio Financial Services Limited, along with its subsidiaries, will harness Reliance’s technological capabilities to digitally deliver financial services, thereby democratizing access to financial offerings for Indian citizens.’ He further indicated that Jio Financial Services is committed to providing straightforward, affordable, and innovative digital-first solutions.

In October 2022, Reliance Industries had announced its decision to demerge and list its financial services business, previously known as Reliance Strategic Investments, which would be rebranded as Jio Financial Services (JFS).