Jio Financial Services shares drop over 7%
The BSE saw an all-time high of Rs 295.7 per share for jio Financial Services’ shares on Monday, February 5, as they surged over 13 percent in trading today. Once it was reported that Jio Financial Services was in talks to buy Paytm’s wallet division, the stock surged. Hdfc Bank is reportedly in the lead to buy the fintech wallet company as well.
The parent company of Paytm, One 97 Communications, was reportedly in exploratory negotiations to sell the wallet business with a few investors, according to a report published by Hindu BusinessLine. Quoted from insiders, it stated that Jio Financial Services and HDFC Bank were reportedly among the front-runners to buy Paytm’s wallet division.
After receiving a system audit report and an external auditor’s compliance validation report, the Reserve Bank of India (RBI) prohibited Paytm Payments Bank (PPBL) from carrying out specific operations, causing Paytm shares to plummet.
An entity of Reliance Industries, led by billionaire Mukesh Ambani, is Jio Financial Services, which was separated off. The Jio Finance Limited (JFL), Jio Insurance Broking Limited (JIBL), Jio Payment Solutions Limited (JPSL), and Jio Payments Bank Limited (JPBL) joint venture, along with the non-banking finance company (NBFC)’s consumer-facing companies, are how the financial services industry is run.
With a $300 million combined investment, the company established an asset management company in partnership with BlackRock, the largest asset manager in the world. As stated by Jio Financial Services, “tech-enabled access to affordable, innovative investment solutions for millions of investors in India” would be provided by the joint venture, Jio BlackRock.
For the quarter that concluded in December, JFS reported a consolidated net profit of ₹293.82 crore, a 56% decrease from ₹668.18 crore in the corresponding quarter (Q2FY24). Consolidated revenue from operations for the business fell 32% on a sequential basis in Q3FY24, from ₹608.04 crore to ₹413.61 crore.
August 21, 2023, saw the launch of JFS on the stock exchanges following its separation from Reliance Industries. The share price of Jio Financial Services was up 15.78% at ₹293.80 a share on the BSE at 1:50 pm.
