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New Delhi [India], July 12 (ANI): <keyword id="20043730" type="General" weightage="20" keywordseo="Jio-Financial-Services" source="keywords" meta.keywordsubtype="org" meta.entityname="Jio Financial Services" meta.hostid="261" meta.entityid="Jio Financial Services">Jio Financial Services</keyword> has received the nod from the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword>) to convert into a <keyword id="20871282" type="General" weightage="20" keywordseo="Core-Investment-Company" source="keywords">Core Investment Company</keyword> (CIC) from a Non-Banking Financial Company (<keyword id="19938496" type="General" weightage="20" keywordseo="NBFC" source="keywords">NBFC</keyword>). The company in an official statement on Thursday stated that "Further to the disclosure dated November 21, 2023, the Company has today received from the Reserve Bank of India approval for conversion of the Company from Non-Banking Financial Company to Core <keyword id="19895437" type="General" weightage="20" keywordseo="investment" source="keywords">Investment</keyword> Company." According to the Reserve Bank of India, a CIC is a specialised NBFC with an minimum asset size of Rs 100 crore. The RBI's circular dated December 20, 2016 stated that, a CIC's main business is the acquisition of shares and securities with certain conditions. One of the conditions stipulated by the central bank is that the CIC holds not less than 90 percent of its net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. The transition from an NBFC to a CIC involves several key changes in the company's operational framework. As a Core Investment Company, <keyword id="2003276" type="General" weightage="20" keywordseo="Jio" source="Orion">Jio</keyword> Financial Services will primarily focus on investments in and the management of its subsidiaries companies. The transformation to a CIC structure would enable Jio Financial Services to delineate the financials and operations of each subsidiary, to provide better value discovery for investors. Unlike typical NBFCs, CICs are non-deposit taking financial companies that have their assets predominantly invested in the equity shares, preference shares, or debt instruments of their group companies. As a CIC, the company gains greater operational flexibility. It can now focus on core investment activities without engaging in other financial services. The CICs can explore different sectors and diversify their investment portfolio. This flexibility allows them to adapt to changing market conditions. The shares of the company also surged more than 1.5 per cent during the opening session on Friday, and stands at Rs 353.25 at the time of filing this report. (ANI)

Jio Financials gets RBI nod to become Core Investment Company

The market valuation of <keyword id="20043730" type="General" weightage="20" keywordseo="jio-financial-services" source="keywords">Jio Financial Services</keyword> hit the Rs 2.2 lakh crore mark for the first time on Friday, as the company shares touched 52-week highs on the bourses. This is the second firm of billionaire Mukesh Ambani-led RIL Group to reach the mcap of Rs 2.2 lakh crore. The scrip of the company surged more than 10 per cent to Rs 331.25 apiece on the <keyword id="19895774" type="General" weightage="20" keywordseo="bse" source="keywords">BSE</keyword>. In the intra-day trade, shares of Jio Financial Services rallied 14.50 per cent to hit a 52-week high of Rs 347 apiece on the bourse. Also, the company's market valuation jumped Rs 27,922.69 crore to Rs 2,20,458.96 crore during the intra-day trade on the BSE. Shares of Jio Financial Services rose nearly 15 per cent to reach a record high of Rs 347 apiece on the NSE and also marked its 52-week high level. In the mid-session trade, the 30-share BSE Sensex rose 59.02 points or 0.08 per cent to 73,217.26, while NSE Nifty gained 15.55 points to 22,233. Earlier this month, the financial services arm of Reliance Industries Ltd (RIL) clarified that it has not been in any negotiations to acquire <keyword id="19898109" type="General" weightage="20" keywordseo="paytm" source="keywords">Paytm</keyword> wallet. On January 15, Jio Financial Services Ltd reported a 56 per cent decline in consolidated net profit at Rs 294 crore for the third quarter ended December 2023, compared to the previous quarter. The company earned a consolidated net profit of Rs 668 crore in the second quarter of the current fiscal. Its revenue too moderated to Rs 414 crore from Rs 608 crore in the September quarter. For the nine months ended December, the company's net profit stood at Rs 1,294 crore. SEE ALSO:<a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-add-subscribers-as-vis-subscriber-base-continues-to-decline/articleshow/107934565.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-add-subscribers-as-vis-subscriber-base-continues-to-decline/articleshow/107934565.cms" target="_blank">Reliance Jio and Airtel add subscribers as Vi’s subscriber base continues to decline</a><a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-neo-9-pro-vs-oneplus-12r-which-mid-range-phone-should-you-buy/slidelist/107938249.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-neo-9-pro-vs-oneplus-12r-which-mid-range-phone-should-you-buy/slidelist/107938249.cms" target="_blank">iQOO Neo 9 Pro vs OnePlus 12R – which mid-range phone should you buy?</a><a href="https://www.businessinsider.in/business/auto/news/kawasaki-ninja-500-sports-bike-launched-in-india-at-5-24-lakh/slidelist/107916430.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/kawasaki-ninja-500-sports-bike-launched-in-india-at-5-24-lakh/slidelist/107916430.cms" target="_blank">Kawasaki Ninja 500 sports bike launched in India at ₹5.24 lakh</a>

Jio Financial Services' shares hit 52-week high; mcap hit ₹2.2 lakh crore

<keyword id="19932515" type="General" weightage="20" keywordseo="foreign-institutional-investors" source="keywords">Foreign institutional investors</keyword> have turned bullish on the <keyword id="19976433" type="General" weightage="20" keywordseo="financial-services" source="keywords">financial services</keyword> and telecom sectors. The <keyword id="21243793" type="General" weightage="20" keywordseo="NSDL-data" source="keywords">NSDL data</keyword> for the second half of June 2024, suggests that FIIs and have bought shares worth over Rs 8,162 crore in the financial services sector and shares worth Rs 6208 crore in the telecom segment. In the first half of June they have invested Rs 1008 crore in the financial services sector and Rs 1736 crore in the telecom. The <keyword id="19949396" type="General" weightage="20" keywordseo="Indian-equity-market" source="keywords">Indian equity market</keyword> witnessed a significant boost in the latter half of June 2024, with FII reaching Rs 29,628 crore from June 16- 30. This influx of foreign capital highlights the growing confidence of international investors in India's economic prospects and its market potential. The investment influx was led by substantial contributions across key sectors, demonstrating the diversified interest of foreign investors in the Indian economy The financial services sector attracted the highest investment, with FIIs pouring in Rs 8,162 crore. This substantial inflow reflects investor confidence in India's robust banking system, burgeoning fintech landscape, and the resilience of the financial sector amidst global economic uncertainties. Telecommunications sector received the second-highest investment, amounting to Rs 6,208 crore. The sector's growth is driven by increasing mobile and internet penetration, advancements in 5G technology, and the expansion of digital infrastructure. This investment highlights the sector's critical role in India's digital transformation. The consumer services sector saw <keyword id="19895633" type="General" weightage="20" keywordseo="investments" source="keywords">investments</keyword> totaling Rs 3,097 crore, indicating robust investor interest in India's domestic consumption story. The sector encompasses a wide range of services, including retail, e-commerce, and hospitality, which have been experiencing significant growth due to rising consumer spending and changing lifestyles. The capital goods sector attracted Rs 2,929 crore in investments, reflecting a positive outlook on India's manufacturing and infrastructure development. Investments in this sector are crucial for enhancing the country's industrial capabilities and supporting the 'Make in India' initiative, which aims to transform India into a global manufacturing hub. The healthcare sector received Rs 2,886 crore, underscoring the growing importance of medical infrastructure, pharmaceuticals, and biotechnology. FIIs bought Rs 2054 crore in auto, Rs 1578 crore in IT, Rs 1475 crore in construction materials, and Rs 1048 crore each in oil &amp; gas, consumer durables, and chemicals stocks. Meanwhile, foreign investors remained net sellers in power, metals, and FMCG stocks. In June, they sold around Rs 2439 crore in power, Rs 1128 crore in metals, and Rs 677 crore in FMCG. In May, FIIs had sold Rs 2439 crore in power, Rs 1128 crore in metals, and Rs 677 crore in FMCG sectors. The increased FII in India comes amid global economic uncertainties, including inflationary pressures, fluctuating commodity prices, and geopolitical tensions. Despite these challenges, India's economic fundamentals, including a stable macroeconomic environment, strong growth outlook, and investor-friendly policies, have made it an attractive destination for foreign investors. (ANI) SEE ALSO:<a href="https://www.businessinsider.in/sports/webstories/virat-kohli-not-included-in-the-rohit-sharma-led-icc-team-of-the-tournament/slidelist/111398470.cms" target="_blank"></a> <a href="https://www.businessinsider.in/sports/webstories/virat-kohli-not-included-in-the-rohit-sharma-led-icc-team-of-the-tournament/slidelist/111398470.cms" target="_blank">Virat Kohli not included in the Rohit Sharma-led ICC Team of the Tournament</a><a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-july-2024/slidelist/111341281.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-launching-in-india-in-july-2024/slidelist/111341281.cms" target="_blank">Upcoming cars launching in India in July 2024</a><a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-price-hike-new-plans-and-how-you-can-save-money/articleshow/111331794.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-and-airtel-price-hike-new-plans-and-how-you-can-save-money/articleshow/111331794.cms" target="_blank">Reliance Jio and Airtel price hike – new plans and how you can save money</a>

FII's bullish on financial services and telecom segment as per June 2024 NSDL data

<ul><li>Jio FS is not a part of indices and index funds which received the stock and will have to exit.</li><li>Investors await announcements from Jio AGM to see if they should hold or sell the stock.</li><li>Experts say that the next few quarters will give a clearer picture on how the business will shape up. </li></ul>The <keyword id="15323576" type="General" weightage="20" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword> stock fell another 5% on Wednesday morning hitting lower circuit for the second day running after it listed on the bourses. Market watchers say that the selling pressure will remain for the next two to three days due to technical reasons. Why is the stock falling? Reliance Industries is part of Sensex, Nifty and other major indices. Now, the index funds that track these indices that hold the RIL received Jio Financial Services on a 1:1 basis. However, since Jio FS is not a part of any of these indices, they will have to sell it as per regulations and that’s what’s leading to the selling pressure. “Index funds cannot hold this stock and have to sell. As many as 14.5 crore such shares have to be sold and 8.5 crore seem to have been sold till yesterday, along with 20 lakh shares today. I think this selling will last for another two-three days,” Deepak Jasani, head of retail research at HDFC Securities told Business Insider India. Jio FS removal postponed On Tuesday, BSE postponed the removal of Jio FS from all the S&amp;P BSE Indices to August 29. As the stock had hit lower circuit limits for two consecutive days, the index committee determined to postpone the removal of JFSL from all the S&amp;P BSE Indices by another three days, said a BSE circular. At a special price discovery session that was held last month, the stock was valued at ₹261.8 and it is currently trading below that at ₹224 per share. The current marketcap of Jio FS is at ₹1.44 lakh crore. “Short-term selling pressure will continue looking at seller mood in the exchange which has increased multifold in the last three days,” said Prashanth Tapse, senior VP of research analyst at Mehta Equities. What happens next The stock will be in Trade-To-Trade (T2T) segment for 10 trading days — wherein stocks have to be bought only under the delivery method and are not eligible to be traded on an intraday basis. The stock will have a five percent circuit filter for the next ten trading sessions. After the circuit opens, investors can take a call on whether to sell or hold the stock. Eye on the AGM The next event that the stock will have to watch for is the annual general meeting (AGM) of Reliance Industries that’s to be held on August 28. Investors and analysts alike hope that announcements will be made on the business plans of the newly listed entity. “We stand neutral on the counter and wait and watch on the AGM development which can give a clear picture on the future outlook,” said Tapse. As of now, there are a lot of expectations on Jio’s synergy benefits with the parent and data-empowered strategies to chart its parth. Experts say that currently the company has little business and will need to watch the next few quarters to see business will shape up. “That’s when we will know if it can be valued as an internet company or an NBFC,” said Jasani.

Jio Financial to remain under selling pressure for next 2-3 days say experts

<ul><li>Market is not rushing to downgrade <keyword id="17277356" type="General" weightage="90" keywordseo="jio-fin" source="Orion">Jio Fin</keyword> rivals just yet, despite its deep pockets and ability to disrupt.</li><li><keyword id="2003276" type="General" weightage="70" keywordseo="jio" source="Orion">Jio</keyword> Fin’s aggression in the unsecured loan business will decide how badly rivals will be impacted in times to come.</li><li>Given that cost of funds for JFS is expected to be significantly lower than other NBFCs, it can price its offerings much better than rivals in consumer finance. </li></ul> A behemoth was born on Monday with the listing of the financial services business of <keyword id="6355199" type="General" weightage="80" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword> on the exchanges. With the listing of <keyword id="15323576" type="General" weightage="100" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword>, the obvious question is the impact that this entity will have on other listed financial services players because it will take them head on. The obvious assumption is that companies that currently are in the consumer and MSME lending space will be directly impacted. Jio Fin’s rich parentage and high capital base will be its biggest advantage. The net worth of the newborn is higher than its nearest competitor and this will enable it to build a large loan book much faster. But this may not be enough to win in the marketplace as it is a total novice when it comes to underwriting and execution. The market will closely monitor Jio Fin’s aggression in the consumer finance business before downgrading its competitors. For now, the jury is out. Like all other businesses that Reliance has set foot in, even in financial services the market is expecting two things – scale and mega disruption. The first segment that Jio is set to rock first is the lending space. Jio Financial Services ahead of its listing on 18 August released some details on the structure of the company and businesses it would operate in. Jio Financial Services is not just a systemically important non-banking financial institution but also a core investment company (CIC). The RBI has mandated the conversion of Jio Fin into a CIC and NBFC over the next three months. What this essentially means is that all the other businesses will operate under this holding company as subsidiaries. In time, all the subsidiaries could also be listed. The key businesses that Jio Financial Services will be present include: Reliance Retail Finance, Reliance Retail Insurance Broking, Reliance Payment Solutions, Jio Payments Bank, the Asset Management Company will be a joint venture with Blackrock. Reliance Industrial Investments and Holdings will be the sole beneficiary of the 6.1% stake in Reliance Industries. Jio Information Aggregator Services will pursue the account aggregator business, which is yet to commence. Jio Infrastructure Management Services will offer project management services. The first segment that Jio Fin seeks to aggressively pursue is retail lending. The dominant player in this segment is Bajaj Finance, which offers small ticket loans to consumers to buy consumer durables. This business has been mastered by Bajaj Finance over the last decade and a half by tying up with stores like Vijay Sales and Croma. This is where Jio will strike first. Reliance Retail has over 550 digital stores against 517 stores owned by its two rivals Croma (387 stores) and Vijay Sales (130 stores). In merchant lending, its focus is on financing options for merchants in grocery, digital, fashion and pharma formats. According to Nomura, the focus of its MSME lending business will be better geographic penetration. Jio Fin will seek to meet the borrowing needs of small businesses that often resort to high-interest informal channels for small-ticket loans. The company will enter into secured loans in the medium term. Over a period of time Jio Fin will offer unsecured loans too. Sources in the banking industry believe that the new entrant will disrupt the sector with differentiated and cheaper offerings as it can afford to do it because of its strong capital base. The cost of funds of JFS are expected to be significantly lower than other NBFCs. According to Morgan Stanley, “The consolidated entity is starting with a capital base of Rs 114.1 bn as of March 2023 (Rs 193.5 bn ex-book value of RIL stake). If it were to allocate this capital to the lending business, this would likely result in it being among the largest NBFCs by net worth. While this implies significant capacity to lend, we will need to see the pace and mode of execution (organic/inorganic). Hence, the market will closely watch every move JioFS makes.” While the markets believe that Jio will put technology and analytics at the heart of the business, building data will take time. Also, given the competition in the sector, borrowing by consumers is high and that is also leading to higher delinquencies. Therefore, the franchise that Jio builds will matter more than the scale of the loan book. The other issue that analysts see is the capital base of the new entity. Jio Fin as a consolidated entity has a capital base of Rs 114,100 crore or Rs 1.14 trillion as of March 2023 (Rs19,350 crore ex-book value of RIL stake). According to Nomura, if Jio Fin were to allocate this capital to the lending business, this would likely result in it being among the largest NBFCs by net worth. “While this implies significant capacity to lend, we will need to see the pace and mode of execution (organic/inorganic). Hence, the market will closely watch every move JioFS makes,” the report adds.

Will Jio Fin follow the retail, telecom model and disrupt the financial services sector?

<keyword id="19938772" type="General" weightage="20" keywordseo="Reliance-Industries-Ltd" source="keywords" meta.keywordsubtype="org" meta.entityname="Reliance Industries Ltd" meta.hostid="261" meta.entityid="Reliance Industries Ltd">Reliance Industries Ltd</keyword> (<keyword id="20002939" type="General" weightage="20" keywordseo="RIL" source="keywords">RIL</keyword>) is set to hold its much-anticipated 47th Annual General Meeting (AGM) today, August 29, 2024. The AGM, which will be held virtually, is expected to feature some key announcements that could be of great interest to investors as well as shareholders. The meeting will start at 2:00 p.m. IST and will be live-streamed across various digital platforms. Read on to know all about <keyword id="22949345" type="General" weightage="100" keywordseo="Reliance-AGM" source="keywords">Reliance AGM</keyword> and what can be expected from it this year. <h2>What is Reliance AGM?</h2> The Reliance Annual General Meeting (AGM) is an important event where Reliance Industries Ltd (RIL) presents its financial performance, future strategies, and key developments to shareholders and the public. Held annually, this meeting is led by RIL Chairman <keyword id="19916798" type="General" weightage="20" keywordseo="Mukesh-Ambani" source="keywords">Mukesh Ambani</keyword> and serves as a platform for major announcements, including potential IPOs, business expansions, and technological advancements. The AGM attracts widespread attention from investors, analysts, and industry watchers, as it provides insights into the company’s direction and its impact on various sectors. <h2>Where to watch livestream</h2> The AGM will begin at 2:00 p.m. IST and will be conducted virtually, allowing millions of shareholders and investors to join from anywhere. The event will be live-streamed across various digital platforms, including RIL's social media pages on YouTube, X (formerly Twitter), and Facebook. Shareholders can join the live broadcast using the following link: <a href="https://jiomeet.jio.com/rilagm" target="_new">https://jiomeet.jio.com/rilagm</a>. <h2>What to expect from Reliance AGM 2024</h2> IPO announcements: One of the most closely watched aspects of the AGM is the potential announcement of IPO timelines for Reliance <keyword id="19906886" type="General" weightage="20" keywordseo="Jio" source="keywords">Jio</keyword> and Reliance Retail. The possibility of these two giants going public has been a topic of discussion since 2019, and with the five-year mark approaching, investors are keen to hear concrete plans. Energy projects: Reliance’s foray into the green energy sector has been a key focus in recent years. The AGM is expected to provide updates on the progress of the company’s ambitious new energy projects, particularly the development of a large green energy complex in Jamnagar. This complex, featuring giga factories for solar PV, energy storage, and other technologies, is part of Reliance’s broader strategy to transition from traditional energy sources to more sustainable options. Investors will be looking for detailed timelines and potential earnings projections from these ventures. 5G Rollout: Reliance Jio’s 5G rollout is another critical area of interest. The company has already made significant strides in expanding its 5G network across India, and the AGM is expected to shed light on how RIL plans to monetize this infrastructure. This could include potential partnerships, new service offerings like the JioPhone 5G, and strategies to increase subscriber growth. The success of Jio’s 5G rollout will be crucial in maintaining its competitive edge in the rapidly evolving telecom market. AI focus: In addition to its core business areas, Reliance is also expected to make announcements related to artificial intelligence (AI). With global tech giants increasingly focusing on AI, RIL is likely to reveal new AI initiatives tailored to the Indian market. This could include expansions to Hanuman AI, a generative AI tool developed with leading Indian institutions, which supports multiple Indian languages. Succession planning: Another topic of interest is Reliance’s succession plan. With Mukesh Ambani having previously outlined a blueprint for leadership transitions within the company, shareholders will be looking for updates on how these plans are being implemented. The AGM may provide further clarity on the roles of Ambani’s children—Akash, Isha, and Anant—who have been earmarked to lead the telecom, retail, and energy segments, respectively.

Reliance AGM 2024 at 2 pm today: What it is, where to watch, and what to expect

Mumbai (Maharashtra) [India], July 26 (ANI): <keyword id="15323576" type="General" weightage="20" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword> Limited (JFS) and BlackRock [NYSE: BLK] on Wednesday announced an agreement to form <keyword id="18155266" type="General" weightage="80" keywordseo="jio-blackrock" source="Orion">Jio BlackRock</keyword>, a 50:50 joint venture that combines the respective strengths and trusted brands of BlackRock and JFS to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India. According to a press release, Jio BlackRock brings BlackRock's deep expertise and talent in investment management, risk management, product excellence, and access to technology, operations, scale, and intellectual capital around markets, while JFS contributes local market knowledge, digital infrastructure capabilities, and robust execution capabilities. "Together, the partnership will introduce a new player to the Indian market with a unique combination of scope, scale, and resources. JFS and BlackRock are targeting an initial investment of US$150 million each in the joint venture", it added <keyword id="4992253" type="General" weightage="50" keywordseo="rachel-lord" source="Orion">Rachel Lord</keyword>, Chair and Head of APAC, BlackRock said, "India represents an enormously important opportunity. The convergence of rising affluence, favorable demographics, and digital transformation across industries is reshaping the market in incredible ways. We are very excited to be partnering with JFS to revolutionize India's asset management industry and transform financial futures. Jio BlackRock will place the combined strength and scale of both of our companies in the hands of millions of investors in India." Speaking on this transaction, Hitesh Sethia, President and CEO, JFS said, "This is an exciting partnership between JFS and BlackRock, one of the largest and most respected asset management companies globally. The partnership will leverage BlackRock's deep expertise in investment and risk management along with the technology capability and deep market expertise of JFS to drive the digital delivery of products. Jio BlackRock will be a truly transformational, customer-centric, and digital-first enterprise with the vision to democratize access to financial investment solutions and deliver financial well-being to the doorstep of every Indian." The joint venture will launch operations post-receipt of regulatory and statutory approvals. The company will have its own management team. BlackRock's purpose is to help more and more people experience financial well-being, the release stated. "As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock", it further stated. Further, the release said, "<keyword id="18155200" type="General" weightage="20" keywordseo="blackrock-india" source="Orion">BlackRock India</keyword> is at the very heart of our global operating platform, enabling us to innovate our business to benefit clients. Over the past 17 years, our India platform has grown to over 2,400 employees across offices in Mumbai, Gurgaon, and Bangalore powering our global network by employing talents across investments, alternatives, operations, analytics and modelling, and corporate functions." Jio Financial Services Limited (JFS) through its operating subsidiaries and joint ventures will offer a broad range of financial services solutions addressing the needs of both consumers and merchants. JFS will use technology as a key enabler to reach customers directly, it added. (ANI)

Jio Financial services and BlackRock to form India asset management joint venture

<ul><li>The demerger of <keyword id="15323576" type="General" weightage="20" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword> (JFS) in the coming months and listing on the stock exchanges is a ‘key moment’ for the Reliance Industries’ stock. </li><li>The JFS demerger is expected to act as a catalyst that the parent Reliance Industries was missing, which is evident from the sagging stock price. </li><li>JFS’ entry could also prove to be a challenge to existing players in the space like Bajaj Finance, Paytm and PhonePe, and a successful take off could also result in attrition at banks and non-banking financial companies (NBFC).</li></ul>The <keyword id="17044379" type="General" weightage="20" keywordseo="demerger-of-jio" source="Orion">demerger of Jio</keyword> Financial Services (JFS) in the coming months and listing on the stock exchanges is a ‘key moment’ for the Reliance Industries’ stock, according to analysts at Nomura. Strong fundamentals and business outlook aside, shares of Reliance Industries (RIL) have gone nowhere since March last year. After hitting a fresh 52-week low in March this year, RIL shares are still down over 10% in 2023. The JFS demerger could be just what the parent’s shares need – value unlocking. The JFS demerger is expected to act as a catalyst that the parent Reliance Industries has been missing. “The listing and value unlocking from RIL’s financial services business in the coming months will be a key event for the stock,” said Nomura in its latest note, adding that the decline in Reliance’s shares is due to “index-related sell-off”. According to the terms of the demerger announced in October last year, all existing shareholders of Reliance Industries will get one share in JFS for each share held in the parent company. The company has now <a href="https://www.businessinsider.in/business/corporates/news/ril-calls-for-shareholder-creditor-meeting-to-approve-demerger-of-financial-services-arm/articleshow/99116790.cms">called</a> for a meeting of creditors and shareholders on May 2 for the requisite approvals. JFS is expected to list in September this year. “As JFS scales up, it can drive value unlocking given higher multiples for peers in these industries,” Nomura said. Jefferies has pegged the valuation of JFS in the range of ₹90,000 crore to ₹1.5 lakh crore, with each share of JFS valued at ₹179 in the brokerage’s base case scenario. Demerger to help JFS ‘dominate’ the industry Looking beyond the benefits for RIL’s shares, the JFS demerger will also help the financial services business attract investors and challenge existing players in the sector like Bajaj Finance and Paytm. “The demerger would help the financial services business to attract different sets of investors, strategic partners and lenders having specific interests in the financial services business,” Nomura added. Analysts at Jefferies underlined that JFS would be able to leverage the large distribution network, customer base and deep pockets of Reliance to take on existing players like Bajaj Finance, Paytm and PhonePe, among others. It will also allow JFS to emerge as the fifth largest financial services company in terms of net worth. Reliance has already made several moves to give JFS the best possible start – this includes bringing in KV Kamath, the former non-executive chairman of ICICI Bank, as its chairman. Subsequently, Kamath hired a former ICICI Bank talent, Manish Singh, to help him build a team as JFS draws closer to launch. Analysts are already watching for attrition at banks and non-banking financial companies or NBFCs. JFS to focus on consumers and merchants Leveraging Reliance’s wide reach in consumer and retail segments thanks to Reliance Jio and Reliance Retail, JFS is expected to focus on consumers and merchants as it kicks off its innings post the demerger. “JFS' key advantage will be low funding cost/ better access on the back of the group's high credit rating and ownership of 6.1% stake in RIL,” said Jefferies. Reliance’s retail arm reported<a href="https://www.businessinsider.in/business/corporates/news/reliance-retails-q3-net-profit-up-6-2-at-2400-crore-finance-costs-depreciation-weigh/articleshow/97179758.cms"> 201 million footfalls</a> across its network of 17,225 stores in Q3, which is an increase of nearly 26% year-on-year. Its telecom arm, Reliance Jio, has been the market leader for several months now, with a total subscriber base of 426 million as of January 2023. This gives JFS a strong pool of consumers to dip into. The recent acquisition of<a href="https://www.businessinsider.in/business/corporates/news/reliance-retail-to-acquire-wholesaler-metro-cash-carry-for-2850-crore/articleshow/96415905.cms"> Metro Cash &amp; Carry</a> will also give the company access to 3 million merchants, of which 1 million are frequent buyers. Upcoming Reliance AGM could lay down the blueprint of JFS strategy Reliance is expected to lay down the blueprint of its JFS strategy in detail at its upcoming annual general meeting (AGM), likely in August. This is ahead of the expected listing of JFS in September this year. “While significant efforts are needed to scale the financials business, given RIL’s robust execution, capacity to invest, industry-leading retail infrastructure and leading market share across the retail and telecom industry, it appears likely that RIL will dominate the industry,” said the analysts at Nomura, expressing their optimistic outlook. On the whole, analysts are bullish overall on RIL’s prospects and the JFS demerger, which has earned the company a stock price upgrade from analysts at Jefferies – to ₹3,100 from ₹3,060 earlier. Analysts at Nomura have given a target price of ₹2,850. The recent price correction has also prompted the analysts at JP Morgan to say that this is an<a href="https://www.businessinsider.in/stock-market/news/reliance-shares-down-22-from-all-time-high-attractive-entry-opportunity-says-jp-morgan/articleshow/98725589.cms"> “attractive entry opportunity”</a>. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/reliance-shares-down-22-from-all-time-high-attractive-entry-opportunity-says-jp-morgan/articleshow/98725589.cms">Reliance shares down 22% from all-time high: Attractive entry opportunity, says JP Morgan</a> <a href="https://www.businessinsider.in/finance/banks/news/loan-growth-showing-signs-of-reversal-from-cyclical-highs-but-asset-quality-to-remain-healthy/articleshow/99245377.cms">Loan growth showing signs of reversal from cyclical highs, but asset quality to remain healthy</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-hcl-tech-amongst-top-picks-of-analysts-heading-into-the-q4-earnings-season/articleshow/99235686.cms">TCS, Infosys, HCL Tech amongst top picks of analysts heading into the Q4 earnings season</a>

Jio Financial Services demerger and listing a ‘key moment’ for Reliance stock

<ul><li>India’s benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> closed the last of FY23 on a strong note.</li><li>All the sectoral indices were in the green, led by IT, banks, metals, and oil &amp; gas.</li><li>Blue-chip giants <keyword id="6355199" type="General" weightage="20" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword>, Nestle, Infosys, ICICI Bank and Tata Motors emerged as the top gainers on Friday.</li></ul>India’s benchmark indices Sensex and Nifty50 closed the last of FY23 on a strong note. All the sectoral indices were in the green, led by IT, banks, metals, and oil &amp; gas. Blue-chip giants Reliance Industries, Nestle, Infosys, ICICI Bank and Tata Motors emerged as the top gainers on Friday. Both the indices closed up nearly 2% up on Friday – while the 30-stock Sensex gained 1,031 points to close FY23 at 58,991, the 50-stock Nifty50 gained 279 points to close at 17,359. The Mukesh Ambani-led Reliance Industries (<keyword id="6484187" type="General" weightage="20" keywordseo="ril" source="Orion">RIL</keyword>) emerged as the top gainer on Friday, after announcing that it has received approval from the National Company Law Tribunal (NCLT) for the demerger of <keyword id="15323576" type="General" weightage="20" keywordseo="jio-financial-services" source="Orion">Jio Financial Services</keyword> (JFS). Post the demerger, JFS will be listed separately on the stock exchanges, and existing shareholders of Reliance Industries will get one share in JFS for every share of RIL. Besides, the fact that foreign institutional investors (FIIs) have been buying Indian stocks in the past two sessions has also supported the market sentiment. “There are signs of the global equity markets, led by the mother market U.S., coming out of the banking contagion fears. The fact that there has been no further bank failures or major stress in the system, is good news for equity markets. <keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> valuations are now reasonable and this has prompted FIIs to turn buyers in the last two days. The market is oversold and this can lead to short-covering and a tactical rally in the near-term,” said Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services. Further, markets await data points to arrive next week right from auto sales for March starting tomorrow from April 1, RBI’s monetary policy outcome next week and corporate earnings for March quarter. Brent crude oil prices continued to remain above the $78 level amid concerns of supply risks from Iraq and lower crude stockpiles in the US. <div type="image" title="daily-profit-loss-36 (1)" msid="99148427" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="RBI’s MPC outcome on investors’ minds" comment="subhead" text="RBI’s MPC outcome on investors’ minds">RBI’s MPC outcome on investors’ minds</cmsannotation> The Reserve Bank of India’s Monetary Policy Committee (MPC) is all set to meet next week to take a decision on rate hikes. The banking sector crisis in the US and Europe, and a slowdown in affordable housing uptake could push the <a href="https://www.businessinsider.in/finance/banks/news/rbis-mpc-could-pause-rate-hikes-in-april-to-gauge-the-impact-of-hikes-so-far-sbi-research/articleshow/99030220.cms">MPC to pause rate hikes</a> for the time being. A pause will also give the MPC to gauge the full impact of the rate hikes undertaken so far, according to the analysts at SBI Research. “The RBI has enough reasons to pause in April. There are concerns of a material slowdown in the affordable housing loan market and financial stability concerns taking centre stage,” said a report by SBI Research. <div type="image" title="sectoral-indices-36 (1)" msid="99148421" hostid="261"></div> Foreign institutional investors (FIIs) bought Indian equities for the third consecutive session with ₹357 crore on Friday while domestic institutional investors (DIIs) bought equities worth ₹2,479 crore. <cmsannotation type="cmsannotation" annotationid="Global markets positive" comment="subhead" text="Global markets positive">Global markets positive</cmsannotation> Markets in the US closed Thursday in the green even after paring their gains marginally after commentary from US Fed officials that inflation still needs to be tackled. While Dow Jones closed 0.43% higher, S&amp;P 500 gained 0.57%. The tech-heavy Nasdaq was up 0.73%. Markets in Asia too closed on a positive note on Friday, with KOSPI leading with gains of 0.97%, followed closely by Nikkei 225 which was up 0.93%, Hang Seng up 0.59%. Taiwan Weighted was up 0.12% amid escalating tensions with China, while Shanghai Composite was up 0.36%. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/lic-delhivery-kfin-tech-among-ipo-duds-of-fy23/articleshow/99140471.cms">LIC, Delhivery, Kfin Tech among IPO duds of FY23</a> <a href="https://www.businessinsider.in/stock-market/news/ipo-demand-may-pick-up-in-the-second-half-of-fy24-after-macro-headwinds-settle/articleshow/99125833.cms">IPO demand may pick up in the second half of FY24 after macro headwinds settle</a> <a href="https://www.businessinsider.in/stock-market/news/the-alpha-creators-bank-and-it-stocks-outperform-nifty50-in-the-last-11-years/articleshow/99114789.cms">The Alpha Creators: Bank and IT stocks outperform Nifty50 in the last 11 years</a>

You Searched For "jio financial services" and got 9 results

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Jio Financial to remain under selling pressure for next 2-3 days say experts

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Will Jio Fin follow the retail, telecom model and disrupt the financial services sector?

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Jio Financial services and BlackRock to form India asset management joint venture

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Jio Financial Services demerger and listing a ‘key moment’ for Reliance stock

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Sensex, Nifty50 rally on the last day of FY23: Reliance Industries, Nestle, Infosys, ICICI Bank and Tata Motors top gainers

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