Jio Financial Services surpasses ₹2 lakh crore market cap, shares gain 14% to hit record high
Upstox
2 min read • Updated: February 23, 2024, 1:48 PM
Summary
Jio Financial Services was demerged from its parent company RIL last year to tap on the growing demand for new-age financial services for retail and small business customers. The company’s share price has gained nearly 48% in the last 6 months.
Jio Financial Services crossed the milestone of ₹2 lakh crore market capitalisation after its shares rallied over 14% on Friday.
Continuing its rally for the fifth consecutive day, Jio Financial shares gained as much as 14.57% to touch a record high of ₹347 a piece on NSE. Jio Financial Services was listed on the stock exchanges in August last year following its demerger from Reliance Industries Limited (RIL). The company’s share price has gained nearly 48% in the last 6 months.
At 12:30 pm, Jio Financial Services traded 9.58% higher at ₹331.85 apiece with the company's market capitalisation valued at over ₹2.12 lakh crore. Currently, 39 listed companies in India have reached the market capitalisation of over ₹2 lakh crore with Mukesh Ambani's Reliance Industries Ltd ranking at the top at ₹20.05 lakh crore.
The company became the first Indian listed entity to achieve the milestone of ₹20 lakh crore market capitalisation earlier this month.
Meanwhile, Reliance Group’s flagship RIL shares also hit a 52-week high of ₹2,988.8 on the NSE. The stock traded at ₹2,973.35 apiece at 12:34 pm, up by 0.33% from the previous close of ₹2,963.5 per share.
Jio Financial Services was demerged from its parent company RIL last year to tap on the growing demand for new-age financial services for retail and small business customers.
Shareholders who had RIL stocks were given equal equity shares of Jio Financial Services for every share of RIL. Jio Financial Services reported a 56% fall in its net profit for the quarter ending in December 2023 on a QoQ basis. From ₹668.18 crore in the previous quarter (Q2FY24), the company's net profit came down to ₹293.82 crore in the period under review.
In the first year, following its demerger from RIL, Jio Financial’s revenue from operations in Q3FY24 dropped to ₹413.61 crore from ₹608.04 crore in the previous quarter.