Reliance Industries (RIL) subsidiary Jio Financial Services (JFS) got listed on the bourses four days ago. The company has eroded market capitalization of more than ₹ 31,000 crore since then, leaving investors worried.
JFS shares hit the 5 percent Lower Circuit for the fourth day in a row. Its shares settled at ₹ 213.45 apiece, against a constant price of ₹ 261.8 derived through a special pre open trading session conducted by the exchanges. Experts say that this free fall has happened as a result of a selling spree by both passive as well as active mutual funds. They say that selling by index passive funds is putting pressure on the counter.
JFS was demerged from Reliance Industries and made a Stock market debut on August 21 with its shares listing at ₹ 265 apiece on the Bombay Stock Exchange (BSE) and at ₹ 262 per share on the NSE as compared to its discovery price of ₹ 261.85 apiece.
The company will be in the Trade-To-Trade (T2T) segment for 10 trading days. Under this segment, stocks have to be bought only under the delivery method and are not eligible to be traded on an intraday basis.
JFS is currently part of the BSE Sensex and the NSE Nifty 50 along with other key indices. Asia Index Pvt Ltd, an index provider on Tuesday deferred the decision to remove the stock from all key indices of BSE, including the Sensex by three days, as the stock hit the lower circuit for two consecutive days.
Earlier, JFS was supposed to exit all S&P BSE indices on August 29, provided that it did not hit the lower circuit in a 3-day period. However, the removal date has been deferred by another three days, considering that the stock hit the lower circuit consecutively.
Written by Simran Bafna
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