Life Insurance Corporation revealed on Tuesday that it has purchased 6.66% of Jio Financial Services, the former financial arm of Reliance Industries that debuted on the public market on Monday.
Details on through a demerger move, LIC gains 6.66% of Jio Financial Services’ shares
According to the insurer, the cost of the acquisition through the demerger of the non-banking financial institution is 4.68 percent of Reliance Industries’ pre-demerged cost as per the company’s notice of July 19.
In the meantime, Jio Financial Services (JFS) shares fell during their first trading session following their Monday IPO. On July 20, the day of the company’s demerger, the stock was listed at Rs 265 a share, a slight premium of more than 1% over its derived price of Rs 261.85. JFS’s total market value was reduced from approximately Rs 1.68 lakh crore at the start of trading to less than Rs 1.6 lakh crore.
JFS stock is prohibited from intraday trading because it is admitted to trades in the ‘T’ group of securities on the BSE.
Furthermore, on Tuesday, JFS shares hit their lower circuit limits for the second straight session. On the BSE, its shares were restrained to a 5% lower circuit limit of Rs 239.20. The shares fell 5% from the discovered price of Rs 261.85 in the previous session as well.
Other than a holding in Reliance Industries, liquids worth $2.5 billion that may underpin a loan book of $13–15 billion have been demerged into JFS, according to foreign brokerage CLSA.