Jio Financial Services (representative image)
On NSE, JFSL shares were also at an upper limit of 5 percent, at Rs 231.25 each, becoming Nifty’s biggest winner.
Share price of Jio Financial Services rose sharply in early trading on Wednesday, continuing the strong momentum of the previous session. Shares of Jio Financial Services were locked on the BSE at a 5 percent upper limit of Rs 232.70 each. On NSE, JFSL shares were also at an upper limit of 5 percent, at Rs 231.25 each, becoming Nifty’s biggest winner.
The stock would soon be banned from stock indices, but due to the upper limit of the circuit, the exclusion is likely to be delayed.
According to the ET Now report, promoter entity Jamnagar Utilities and Power, a step-down unit of Reliance Industries (RIL), has likely bought about 5 crore Jio Financial Services shares at Rs 208-211 each.
Even on Tuesday, JFSL shares rose after reports of a block deal trading about 0.8 percent of the company’s equity.
Meanwhile, on August 25, Motilal Oswal Mutual Fund had acquired 3.72 crore shares, or a 0.6 percent stake, of Jio Financial Services through an open market transaction. The shares were bought for Rs 202.8 each for a transaction value of Rs 754 crore.
Jio Financial is in the news these days as the company plans to consolidate its payments infrastructure with offerings for both consumers and merchants. In addition, the company aims to enter the insurance segment to offer life, general and health insurance products. The company is present in the AMC business through a partnership with BlackRock.
At RIL’s 46th General Assembly, Chairman and Chief Executive Officer Mukesh Ambani named Jio Financial as the fourth growth engine. He said that JFS products will not only compete with current industry benchmarks, but also explore breakthrough features such as blockchain-based platforms and CBDC.
“They will adhere to the highest security and legal standards and ensure the protection of customer transaction data at all times. JFS will enter the insurance segment to offer simple yet smart life, non-life and health insurance products through a seamless digital interface, potentially partnering with global players. It will use predictive data analytics to co-create contextual products with partners and meet customer requirements in a truly unique way,” said Ambani.
Ambani said JFS has been conceptualized to fill a critical gap in the financial services needs of much of the Indian economy, primarily in the informal and underserved sectors in rural, semi-urban and urban areas. He cited the joint venture with BlackRock to create an asset management company, which he says will provide simple and reliable investment solutions. The joint venture will combine the respective strengths of JFS and BlackRock to deliver technology-based, affordable and innovative investment solutions, he said.
“Like Jio and Retail, JFS will also prove to be a valuable addition to the Reliance ecosystem of customer-facing companies,” said Ambani.
JFS’s digital-first architecture will give it an unparalleled edge to reach millions of Indians, Ambani said, adding that because RIL is a highly capital-intensive business, RIL has given JFS a strong capital base to become a trusted financial services company in the world. to build and achieve rapid growth.
“Reliance has capitalized JFS with a net worth of Rs 1,20,000 crore to create one of the world’s highest capitalized financial services platforms from scratch. JFS is blessed with a very strong board led by Shri KV Kamath, an experienced and most respected banker. A highly motivated leadership team is being built with a combination of experts from the financial sector and young leaders who are eager to take on big challenges,” says Ambani.
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