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Jio Financial hits 5% upper limit; gains 10% in two days post RIL AGM

Jio Financial to partner foreign firms for insurance foray, Mukesh Ambani said at the 46th RIL AGM.

Jio Financial Services

Photo: Bloomberg

SI Reporter Mumbai

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Shares of Jio Financial Services were locked at the 5 per cent upper limit at Rs 232.70 on the BSE in Wednesday's intra-day trades backed by heavy volumes. 

As of 11:50 AM, the counter had seen a combined volume of around 25.65 million shares on the BSE and the NSE with pending buy orders for over 12.20 million shares. Meanwhile, the S&P BSE Sensex was up 0.5 per cent at 65,420. 

In the recently conducted Annual General Meeting (AGM) of Reliance Industries, chairman, Mukesh Ambani said that Jio Financial Services will partner foreign firms for foray into the insurance sector.

Jio Financial Services (JFS) will enter the insurance market in partnership with global companies, said Mukesh Ambani, chairman of Reliance Industries, of which JFS is a part.

“JFS will enter the insurance segment to offer simple yet smart life general and health insurance products through a seamless digital interface, potentially partnering with global players,” said Ambani at the 46th AGM of Reliance Industries.

Earlier in July, JFS announced a 50:50 joint venture with US-based BlackRock to set up an asset management company in India for an initial investment of $150 million. Ambani said the partnership "will synergise the respective strengths of JFS and BlackRock to deliver tech-enabled, affordable, and innovative investment solutions." READ MORE

According to reports, Reliance is in discussions with global and domestic executive head hunters to find a leader for JFS. Veteran banker K V Kamath, who serves as Jio Financial’s non-executive chairman, will closely monitor the executive hires. READ MORE

JFS was listed on the bourses on August 21, 2023, at Rs 265 on the BSE and Rs 262 on the NSE as against the Rs 261.85 - the price fixed at a special price discovery session held on July 20.

Post listing, the stock hit four consecutive 5 per cent lower circuits and touched a low of Rs 202.80 in the process. However, post the AGM the stock has witnessed a steady ascend and gained 9.5 per cent so far in two trading sessions.

Post listing, state-run insurance major Life Insurance Corporation (LIC) acquired 6.66 per cent stake in JFS through open market purchases.

The stock which is temporarily part of the BSE benchmark Sensex will be removed from the 30-share index before opening of trading on September 1. Apart from Sensex, JFS will also be removed from other indices including Sensex 50, BSE 100, BSE 500, among others.


 

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First Published: Aug 30 2023 | 12:06 PM IST

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