Jio Financial Services Ltd achieved a milestone as its market capitalization crossed Rs 2 lakh crore for the first time, driven by a remarkable 35 percent surge in its share price since the beginning of the year. Its parent company, Reliance Industries, also reached a record high on February 23.
By 10:30 am, shares of Jio Financial Services surged 8 percent to reach a record Rs 326. This marked the fifth consecutive session of gains, with the stock rising nearly 17 percent during this period, resulting in a market capitalization of Rs 2.08 lakh crore.
Reliance Industries reached an intraday high of Rs 2,989, with the stock trading at Rs 2,978 on the BSE, reflecting a 0.5 percent increase from the previous close.
Presently, 39 firms are trading with a market capitalization exceeding Rs 2 lakh crore on local stock exchanges. Reliance Industries leads the pack with a market cap of Rs 20.05 lakh crore, followed by Tata Consultancy Services and HDFC Bank with Rs 14.78 lakh crore and Rs 10.78 lakh crore, respectively.
In its December quarter earnings report, Jio Financial disclosed a net profit of Rs 293 crore and a net interest income of Rs 269 crore. The company’s total interest income stood at Rs 414 crore, with total revenue reaching Rs 413 crore. Jio Financial is redirecting its focus towards secured lending while adopting a cautious stance towards unsecured products amidst the current market and regulatory environment. It aims to strengthen its secured lending portfolio by introducing two new products: Device-as-a-Service, offering operational and financing leases for devices such as Airfiber, phones, and laptops through its subsidiary Jio Information Aggregator Services Ltd, and supply-chain financing, a short-term self-liquidating loan product addressing suppliers’ working capital needs, set to be launched in the coming quarters, as per a B&K Securities report.
In January, Jio Financial Services and Blackrock Financial Management filed documents with the Securities and Exchange Board of India to establish a mutual fund business in India.
Jio Financial Services was listed on the stock exchange on August 21, 2023. Since its listing, the stock has appreciated by over 21 percent.
