Life Insurance Corporation announced on Tuesday (22nd August 2023) that it has acquired 6.660% shareholding in Jio Financial Services, the demerged financial entity of Reliance Industries that made its stock debut on Monday (21st Aug 2023). * The insurer said that the cost of the acquisition done through the demerger of the non-banking financial entity is 4.68 per cent of the pre-demerged cost of Reliance Industries as per the notice of the company dated July 19, 2023.* Meanwhile, the shares of Jio Financial Services (JFS) hit the lower circuit in its maiden trading session after its listing on Monday. The stock was listed at Rs 265 per share, a marginal premium of over 1 per cent over its derived price of Rs 261.85 on July 20, the date of the company’s demerger.
* The total market capitalisation of JFS was corrected to less than Rs 1.6 lakh crore from over Rs 1.68 lakh crore when the trading kicked-off. * JFS stock is admitted to dealings in the ‘T’ group securities on BSE, meaning that intra-day trading in the stock is not allowed. * Additionally, JFS shares hit its lower circuit limits for the second straight session on Tuesday (22nd Aug 2023). Its shares were locked at 5 per cent lower circuit limit of Rs 239.20 on BSE. In the previous session too, the shares were down 5 per cent from the discovered price of Rs 261.85. * Foreign brokerage CLSA noted that other than a stake in Reliance Industries, liquids worth $2.5 billion have been demerged into JFS that could support a loan book of $13-15 billion..Source : Business Today
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