Monday Jio Financial Services will go public, and MFs will sell 145 million shares.
Jio Financial Services (JFS), which was separated from Reliance Industries (RIL) in the preceding month, is set to be officially listed on stock exchanges on August 21st, falling on a Monday. During a price discovery session that took place on July 20th, the valuation of JFS shares was determined to be Rs 261.85 each, indicating an overall valuation of Rs 1.66 trillion ($20 billion).
Industry experts are of the opinion that the stock has the potential to surpass the Rs 300 threshold. G Chokkalingam, the founder and research leader at Equinomics, suggests that the stock’s listing price could hover around Rs 300. He points out that if we exclude the treasury stock that the company holds, the relative value of Jio Financial Services when measured against its net worth, is notably lower in comparison to the valuation commanded by non-banking financial companies (NBFC) peers.
According to analysts, the oil-to-telecoms conglomerate made a wise decision to demerge since it would assist the new company draw in a variety of investors, strategic partners, and lenders with specialized knowledge of the financial services industry.