Jio Financial Services will now be dropped from the Nifty 50 and Sensex effective August 29, instead of August 24 as earlier indicated. This is because the stock hit its circuit limit for two consecutive days, soon after listing.
"The index committee has determined to postpone the removal of JFSL from all the S&P BSE Indices by another three days. JFSL will now be removed from all the S&P BSE indices effective prior to the open of trading on Tuesday, August 29," said S&P Dow Jones Indices in a communique to clients.
While there has been no formal confirmation from NSE Indices yet, current methodology for demergers indicate the same.
"In case, during the first 2 days of these 3 days, if the spun off business/ entity hits the price band on both days, then the exclusion date shall be deferred by another three days," NSE Indices had said in its press release on April 26.
Also Read: A question of values: How Jio Financial Services stacks up against rivals
As passive funds adjust their portfolios, the combined outflow will approximately be 145-150 million shares, encompassing both Nifty and Sensex, as per Nuvama Alternative & Quantitative Research.
Meanwhile, Jio Financial will continue to be a constituent of MSCI and FTSE indices. There won't be any fresh buying or selling, Nuvama's Abhilash Pagaria noted.
Jio Financial Services listed on the bourses on August 21, as India's second largest listed non-bank financial company, after Bajaj Finance. Analysts believe JFS can opt for wide variety of financial service business including the lending business, digital broking, insurance, mutual funds and payments.
JFS has already announced its tie-up with Blackrock, the world’s largest asset manager, to float a mutual fund company. Together, the partnership will introduce a new player to the India market targeting an initial investment of $300 million.
On August 22, the stock closed at Rs 236.45 on the NSE with a market cap of Rs 1.50 lakh crore.
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