Jio Financial Services is all set to report its first-ever quarterly results since listing. Ahead of results, in the month gone by, mutual funds brought down their stake in the NBFC (non-banking financial company) to 4.71 percent at the end of September from 6.63 percent in August, according to data compiled by Prime Database.
SBI Mutual Fund reduced its stake from 1.38 percent to 0.20 percent, Nippon India Mutual Fund brought down its stake from 0.53 percent to 0.33 percent and HDFC Mutual Fund cut its holding from 0.33 percent to 0.19 percent.
Also read: A look at what top mutual funds bought and sold this Sept
Some fund houses were buyers, too. Invesco and Mahindra Manulife Mutual Funds increased their stake from 0.05 percent each in August to 0.10 percent. Meanwhile, Sandeep Tandon’s Quant Mutual Fund increased its stake from 1.07 percent to 1.10 percent.
It is noteworthy that all mutual fund schemes holding shares of Reliance Industries had received equal shares of Jio Financial Services as per the scheme of arrangement. While passive funds tracking Nifty 50 had to remove the stock because of their mandate, active funds could have sold anticipating a correction in the price due to passive selling, said an analyst.
Meanwhile, many fund managers continue to remain bullish on the NBFC’s prospects. Quant Mutual Fund and Motilal Oswal Mutual Fund both hold close to ~1 percent stake in the company, as per Prime Database.
Reliance Industries chairman Mukesh Ambani has already announced that Jio Financial Services will enter the insurance segment to offer life, general, and health insurance products.
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Speaking at the annual general meeting, Ambani had said, "JFS will...offer simple, yet smart, life, general, and health insurance products through a seamless digital interface, potentially partnering with global players."
Also read: A question of values: How Jio Financial Services stacks up against rivals
That apart, JFS has partnered with globally renowned Blackrock to enter the asset management industry. While its plans in the lending segment are yet to be announced, analysts believe that JFS will go big on merchant and customer lending thanks to its parent's wide reach in kirana stores. As of June end, Reliance Industries had a total store count of 18,446 with registered customers at 26.7 crore.
Reliance has capitalised JFS with a net worth of Rs 1,20,000 crore to create one of the world’s highest-capitalised financial service platforms at inception. JFS’ current market capitalization stands at Rs 1.42 lakh crore, making it the third largest NBFC after Bajaj Finance and its holding company Bajaj Finserv.
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