Jio Financial Services (JFS), the demerged financial business of Reliance Industries, will be removed from the BSE Indices, including the benchmark 30-pack Sensex, on September 1, reported Moneycontrol.
“…effective prior to the open of trading on Friday, September 1, 2023, Jio Financial Services Ltd will be removed from all the S&P BSE Indices following its listing on Monday, August 21, 2023, due to its spin-off from its parent, Reliance Industries,” the BSE notice said.
Initially scheduled to be removed by August 23, the stock’s exclusion plan was delayed by exchanges as it continued to be locked in the lower circuit.
On August 31, the stock marked its third consecutive session of gains and closed at an upper circuit of 5 per cent, reaching Rs 242.50 a share on BSE.
According to Nuvama Alternative Research, JFS accounts for 1.1 per cent of Sensex’s weight, potentially leading to a passive selling of about 60 million shares (worth around $180 million).
Nuvama also stated that Jio Financial won’t be removed from Nifty indices until the newly formed entity avoids price limits (upward or downward) for two consecutive days.
Meanwhile, on Monday, Reliance Industries Chairman Mukesh Ambani announced that JFS will enter the insurance segment to offer life, general and health insurance products.
It will leverage 450 million mobile phone subscribers’ base of the telecom arm, Jio, to sell its products, including payment services, he had said.
JFS has announced a joint venture with BlackRock for mutual funds business.
Last week, Motilal Oswal Mutual Fund acquired 3.72 crore shares of Jio Financial Services for Rs 754 crore through an open market transaction.
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