Through a demerger move, LIC gains 6.66% of Jio Financial Services' shares

22 Aug 2023 , 12:24 PM

Life Insurance Corporation revealed on Tuesday that it has purchased 6.66% of Jio Financial Services, the former financial arm of Reliance Industries that debuted on the public market on Monday.

According to the insurer, the cost of the acquisition through the demerger of the non-banking financial institution is 4.68% of Reliance Industries’ pre-demerged cost as per the company’s notice of July 19.

In the meantime, Jio Financial Services (JFS) shares fell during their first trading session following their Monday IPO. On July 20, the day of the company’s demerger, the stock was listed at Rs 265 a share, a slight premium of more than 1% over its derived price of Rs 261.85.

Furthermore, on Tuesday, JFS shares hit their lower circuit limits for the second straight session. On the BSE, its shares were restrained to a 5% lower circuit limit of Rs 239.20. The shares fell 5% from the discovered price of Rs 261.85 in the previous session as well.

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