10 months ago

Jio Financial Shares Dip 18% After Weak Listing: Should You Buy, Sell or Wait?

Jio Financial Service (symbolic picture)
Jio Financial Service (symbolic picture)


IIE Digital Desk : Shares of Jio Financial Services Ltd., the financial services arm of Reliance Industries Ltd., dipped 18% on their debut on the stock exchanges on Monday, after the company raised ₹15,500 crore (US$2.1 billion) in its initial public offering (IPO). The stock opened at ₹467 per share, below its issue price of ₹512 per share. It touched a low of ₹430 per share during the day before closing at ₹447.50 per share. The weak listing of Jio Financial shares comes amid a broader sell-off in Indian equities. The benchmark Sensex index closed down 1.4% on Monday.

There are a few reasons why Jio Financial shares may have underperformed on their debut. First, the IPO was heavily subscribed, with bids received for 14 times the number of shares offered. This suggests that many investors may have bought the shares with the intention of selling them quickly for a profit. Second, the IPO was priced at a premium to the valuations of other financial services companies in India. This may have made the shares less attractive to investors. Third, the market is currently facing some headwinds, due to concerns about rising inflation and interest rates. This may have also weighed on the demand for Jio Financial shares.

So, should you buy, sell or wait for Jio Financial shares? It is too early to say. The stock is still trading below its issue price, but it is also trading below its pre-IPO valuation. It is possible that the stock could recover in the near future, but it is also possible that it could continue to underperform. If you are considering investing in Jio Financial shares, it is important to do your own research and understand the risks involved.

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