Mukesh Ambani's Jio Financial Services market cap tops Rs 2 trillion

Mukesh Ambani-led Jio Financial Services has become the latest entrant to the Rs 2-trillion market cap (mcap) club. The company’s shares on Friday climbed 10.2 per cent to close at Rs 334, valuing the unit spun off from Reliance Industries (RIL) last year, at Rs 2.12 trillion.

Shares of Jio Fin are up 34.5 per cent so far this month. The gains come amid troubles at digital payments major Paytm following the Reserve Bank of India (RBI) action against its payments bank’s unit. Shares of One 97 Communications, Pay­tm’s parent, are down 46 per cent this month.

Market players expect Jio Financial, which also operates a payments bank and voice box, and other fintech players to benefit as Paytm will struggle to retain its merchants and customers. The extended deadline provided by RBI for usage of Paytm Payments Bank ends on March 15.

Jio Financial Services was demerged from RIL in July 2023 and got listed separately on August 21 last year. During its initial price discovery session on July 20, the company’s stock was valued at Rs 261.85 apiece, implying a market cap of Rs 1.66 trillion.

The company is venturing into a variety of businesses, including secured and unsecured lending, digital equipment leasing, supply chain financing, and expanding its reach in insurance broking. Jio fin is also in the process of setting up an asset management company in a joint venture with Blackrock. They have applied for a registration with the market regulator.