People stand next to a logo of Jio Financial Services ahead of its listing ceremony at the Bombay Stock Exchange in Mumbai, India, August 21, 2023.
Credit: Reuters Photo
Shares of Jio Financial Services Ltd, the demerged financial services unit of Reliance Industries, continued to face selling pressure on Thursday and went lower by 5 per cent to hit the lower circuit limit for the fourth consecutive day.
The stock fell by 4.99 per cent to Rs 215.90 its lower circuit limit on the BSE.
On the NSE, it declined 4.99 per cent to hit its lower circuit limit of Rs 213.45.
The company commanded a market valuation of Rs 1,37,167.41 crore. In four days, the company's market valuation has declined by Rs 22,776.52 crore.
The stock of Reliance Industries also declined 1.76 per cent to settle at Rs 2,478.65 apiece on the BSE, dragging the benchmark index lower.
The BSE Sensex fell 180.96 points or 0.28 per cent to settle at 65,252.34.
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 limits on Tuesday and Wednesday.
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.