NEW DELHI: Promoters of Jio Financial Services (JFSL), which got demerged from Reliance Industries (RIL) earlier in the year, have raised stake in the NBFC from 45.8% to 46.77% since its listing in August.
September quarter shareholding data shows the promoters have bought 6.1 crore shares. In the meantime, mutual funds have decreased their ownership from 6.27% to 4.71%. FIIs too have reduced holding to 21.58% from 26.4% at the time of listing.
At the end of the September quarter, LIC owned a 6.66% stake in the company. Big FIIs include the Singapore government and Europacific Growth Fund.
The stock, which debuted on stock exchanges in August-end after a demerger from incubator Reliance Industries (RIL), is trading below its listing price of Rs 265 on BSE and Rs 262 on NSE.
In the September quarter, JFSL reported 101% QoQ growth in its consolidated profit at Rs 668 crore. As of Sept-end, JFSL’s consolidated total assets stood at Rs 119,598 crore, while the consolidated net worth was at Rs 115,631 crore.
Having identified four spectrums – lending, investment, transaction (payments) and insurance – for growth, Jio has started sandbox lending in Personal Loans (through MyJio app in Mumbai) and consumer durables loans at 300 locations.
Sanjiv Bhasin of IIFL Securities said even though Jio is an expensive stock (with a market capitalisation of Rs 1.4 lakh crore), it is going to be an outperformer on the back of pedigree management, cross-selling opportunities, etc.
“India is on the cusp of savings being capitalised into the stock market and other instruments and that financialisation is going to be widespread and the bigger players are definitely going to get the largest share of the cake but make no mistake, NBFCs are being an outperformer. I think that their cost of funds and their diligence, and compliance are much less than what banks have to do. So, Jio is in a sweet spot, only it needs more gestation,” Bhasin said.
