Jio IPO Listing May Boost Financial Services Shares
Mumbai, October 27: The shares of Jio Financial Services closed at ₹207.25. Experts believe that the upcoming listing of Jio Platforms’ IPO on October 28 may create some movement in the shares of Jio Financial Services as well.
Mukesh Ambani’s telecom company, Jio Platforms Limited, is set to list its IPO, marking the second company under the Reliance Industries group to enter the stock market under the Jio name.
Currently, Jio Financial Services is already listed on the stock market. Some analysts suggest that the IPO listing could indirectly influence the performance of Jio Financial Services shares.
Regarding the performance of Jio Financial Services shares, they closed at ₹207.25. Over the past week, the shares have seen a decline of 3.05%, and an 8.60% drop over the last month. Year-to-date, the shares have fallen by 29.83%, and on a year-over-year basis, there has been a 32.10% decrease. Over the past three years, the shares have decreased by approximately 7%, indicating that they have not been beneficial for long-term investors.
Experts have varied opinions on the matter. Gaurav Garg, Head of Research at Lemonn, stated, “The Jio Platforms IPO may draw investor attention to the entire Jio ecosystem, but the impact on Jio Financial Services is likely to be indirect and not immediate. The revenue sources for Jio Platforms’ telecom and digital services business differ from those of Jio Financial’s lending, payment, and other financial services operations. Therefore, investors should not assume that the IPO will lead to a consistent rise in Jio Financial Services shares.”
Garg further added, “There is potential for growth in Jio Financial due to its expanding lending and financial services business. Recent quarterly results showed good growth in net interest income and pre-provisioning operating profit. However, there has been a year-on-year decline in consolidated profit, highlighting the importance of monitoring operating costs, credit provisions, and the pace of profitability in new businesses.”
For investors, Garg advised those with a medium to long-term perspective to hold their shares according to their risk capacity. New investors should consider investing in portions during market dips rather than making purchases based solely on IPO-related sentiment.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.