Shares of Jio Financial Services (JFS) gained over 2% to day’s high of Rs 216 on the NSE on Tuesday following a likely block deal that saw 0.8% equity changing hands.
The price uptick was accompanied by strong volume action with over 4.21 crore shares on the block. The stock opened in the red and fell to the day’s low of Rs 207 before making a U-turn.
JFS shares were also the top Nifty gainers around 9:50 am and shot up after the news about the likely block deal was reported by ETNow.
Since its addition to key indices on July 20 for a temporary period at a constant price of Rs 261.8, the stock has been on a losing spree and fallen in six out of seven trading sessions, excluding today’s session. While the stock has fallen by over 20%, the market cap of the company has eroded by nearly 25,000 crore from Rs 1.61 lakh crore to Rs 1.36 lakh crore.
The shares of the newly-listed JFSL had ended 5.7% lower from day’s high on Monday as shareholders appeared unimpressed by the Annual General Meeting (AGM) of Reliance Industries (RIL) that was televised live. The Chairman and Managing Director Mukesh Ambani revealed little about future plans in the highly competitive and regulated business at the annual general meeting (AGM) of Reliance Industries today.
The stock had hit a 5% upper circuit after Ambani started reading out his speech but as there were hardly any triggers, the counter succumbed to selling pressure once again.
Ambani’s announcement that JFSL will enter the insurance segment came as no surprise to investors as the company’s information memorandum has already laid out four key businesses that the company intends to target – retail lending, asset management, insurance broking and digital payments.
During the AGM, Ambani announced that JFSL will soon offer simple and smart products in life, general, and health through a seamless digital interface, potentially partnering with global players.
He said the company will use predictive data analytics to co-create contextual products with partners and cater to customer requirements in a truly unique way.
“In payments, JFSL will consolidate its payments infrastructure with a ubiquitous offering for both consumers and merchants, further driving digital payment adoption for India. JFS products will not just compete with current industry benchmarks but also explore path-breaking features such as blockchain-based platforms and CBDC. They will adhere to the highest standards of security, regulatory norms and ensure protection of customer transaction data at all times,” Ambani said.
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