Shares of Jio Financial Services Ltd., a recently spun off unit of Reliance Industries Ltd., made a weak start in a widely watched trading debut on Monday.
(Bloomberg) — Shares of Jio Financial Services Ltd., a recently spun off unit of Reliance Industries Ltd., made a weak start in a widely watched trading debut on Monday.
Jio Financial’s stock dropped to as low as 248.90 rupees early in the session after opening at 265 rupees. Shares were priced at 261.85 rupees apiece via an hour-long special trading session last month, valuing the company at about $20 billion.
READ: Passive Investors May Sell $465M of Jio Financial Shares: Nuvama
Reliance offered one share of Jio Financial for every share owned by the firm’s investors. The new company will unlock value for shareholders and give them an opportunity to be a part of a new growth platform, billionaire owner Mukesh Ambani said in Reliance’s most recent annual report.
Jio Financial, which as yet boasts of little revenue but owns a 6.1% stake in Reliance, has announced a partnership with BlackRock Inc. to set up an Indian asset management venture.
Analysts expect the company to benefit from Reliance’s wider presence in digital and retail businesses, potentially positioning it among India’s biggest non-banking finance companies and helping Ambani create an empire similar to China’s Alibaba Group Holding Ltd. and Tencent Holdings Ltd.
Coming soon: Sign up for the India Edition newsletter by Menaka Doshi – an insider’s guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.