LIC Snaps Up 6.66% Stake in Newly Independent Jio Financial Services

On Tuesday, Life Insurance Corporation (LIC) confirmed it has secured a 6.660% ownership in Jio Financial Services. This newly-independent financial arm of Reliance Industries made its stock market entrance just a day prior.

According to LIC, this stake was procured through the partition of the financial unit from its parent company, Reliance Industries. The purchase price for the stake is 4.68% of what Reliance Industries was worth before the financial unit was split off, as stated in a company announcement dated July 19.

Meanwhile, Jio Financial Services experienced a decrease in its stock value during its first day on the market. Opening at Rs 265 per share, it was a modest uptick of a little more than 1% from its reference price of Rs 261.85 as determined on July 20, the day of the separation. The total market worth of the company also saw a downward adjustment, falling from over Rs 1.68 lakh crore to less than Rs 1.6 lakh crore.

It’s worth noting that the stock of Jio Financial Services falls under the ‘T’ category in BSE, meaning intra-day trading is not an option for investors.

Furthermore, for the second day in a row, the company’s shares hit their lower trading limits, locked at a 5% decrease at Rs 239.20 on BSE. The stock had faced a similar 5% drop from its initial price on its debut day.

Foreign financial services company CLSA indicated that in addition to the Reliance Industries’ stake, liquid assets totaling $2.5 billion have been relocated to Jio Financial Services. These assets could potentially underpin a loan book in the range of $13 billion to $15 billion.