Jio Financial Services' Circuit Filters Changed To 20% From 5% Effective From Sept 4; Stock Up 15% In 5 Days

Bombay Stock Exchange (BSE) has increased the circuit filters of Jio Financial Services to 20% from the earlier 5%. The third largest NBFC continues to stay under the 'T' group of securities. The changes in the circuit limits will come into effect from September 4.

On BSE, Jio Financial Services currently has a 20% upper circuit of Rs 294.35 and a 20% lower circuit of Rs 196.25.

When a stock hits the upper circuit, it usually means that there are several buyers for the respective equity shares but no sellers. This is the opposite in the case of lower circuits.

Last week, on Friday, Jio Financial shares ended at Rs 245.30 apiece, soaring by 4.99%. The company's market cap is nearly Rs 1.56 lakh crore.

In the trading week from August 28th to September 1st, Jio Financial Services witnessed its best performance since the listing. The stock gained by nearly 15% on BSE. Due to this, the stock has recovered huge losses owing to heavy selloffs in the initial week of listing.

Since listing, Jio Financial's stock is down by a little over 2.5%.

Jio Financial stock has started to trade on rolling settlement from September onwards.

Earlier, the stock was added to the Trade-for-Trade segment for 10 trading days. That means they were not offered in intraday trading but instead on a delivery basis. From August 21 to September 1, Jio Finacial's circuit limits were kept at 5%.

But from September 1st, Jio Financial stock is offered on an intraday basis.

Jio Financial Services listed on August 21 at Rs 265 apiece, up by 1.20% from its fixed price of Rs 261.85 apiece in the pre-market price discovery session which was held last month.

From August 21 to August 26, in its first trading week, Jio Financial shares had nosedived over 22.5% on BSE. On August 25, the company's market dropped to Rs 1.29 lakh crore at a 1-year low price level, compared to the market cap of Rs 1.66 lakh crore at the listing price on August 21, hence, leading to an erosion of Rs 37,000 crore of wealth since listing.

However, the stock gained momentum last week.

Currently, the stock has a 52-week high and low of Rs 278.20 apiece and Rs 205.15 apiece respectively.

Also, BSE cited that Asia Index Private Ltd recently announced that effective before the open of trading on Friday, September 01, 2023, Jio Financial Services will be removed from all the S&P BSE Indices following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries.

At the 46th annual general meeting, RIL's chief Mukesh Ambani shed light on the newest company of the group, Jio Financial Services. Ambani said that JFS has been conceptualised to fill a critical gap in the financial services needs of a large section of the Indian economy. He also believes that JFS was born to accelerate the replication of India's dazzling growth story in Bharat.

Explaining the basic mission of JFS, Ambani said, "JFS has been conceptualised to fill a critical gap in the financial services needs of a large section of the Indian economy, mainly in the informal and underserved sectors in rural, semi-urban and urban areas. This will give a big boost to inclusive and accelerated growth of the economy."

According to Ambani, JFS will massively increase financial services penetration by transforming and modernising them with a digital-first approach that simplifies financial products, reduces the cost of service, and expands reach to every citizen through easily accessible digital channels.

Jio Financial Services has signed a deal for JV with BlackRock to set up an asset management business, to which Ambani said it will provide simple and trustworthy investment solutions in the country.