Jio Financial Services shares fall 5%; hit lower circuit limit for 3rd day

New Delhi: Shares of Jio Financial Services Ltd, the demerged financial services unit of Reliance Industries, fell by 5 per cent on Wednesday to hit its lower circuit limit for the third day running.

The stock declined 5 per cent to hit its lower circuit limit of Rs 227.25 on the BSE.

At the NSE, it fell by 5 per cent to hit its lowest trading permissible limit for the day at Rs 224.65.

The company commanded a market valuation of Rs 1,44,378.38 crore.

The stock has been hitting lower circuit limits for the third day running on Wednesday.

Shares of Jio Financial Services listed on the bourses on Monday, with the stock falling nearly 5 per cent to hit the lower circuit limit.

It fell 5 per cent to hit the lower circuit limit on Tuesday also.

Jio Financial Services Ltd (JFSL) demerged from Reliance last month.

Leading stock exchange BSE on Tuesday postponed the removal of Jio Financial Services Ltd from all the S&P BSE indices to August 29.

Earlier, the stock was scheduled to be removed from the indices on August 24.

"AIPL (Asia Index Private Ltd) is aware of the recent lower circuit hitting for JFSL. Since the stock has hit lower circuit limits for two consecutive days -- Monday, August 21 and Tuesday, August 22, the index committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another 3 days," according to a BSE circular on Tuesday.

Now, JFSL will be removed from all the S&P BSE Indices effective prior to the opening of trading on August 29, 2023, it had said.

Asia Index is a joint venture between BSE and S&P Dow Jones Indices.

Moreover, if JFSL continues to hit lower circuits in the next two days, the removal date will be deferred by another three days, according to the notice.

Additionally, in case JFSL does not hit the lower circuit limit on either of the next two days but hits the lower circuit limit on the third day, the removal of JFSL from all the S&P BSE Indices will be deferred by another 3 days, it added.

Reliance Industries demerged its financial services undertaking into RSIL (Reliance Strategic Investments Ltd), which was renamed as JFSL. Shareholders got one JFSL share for each Reliance share they held.