Jio Financial Services hits Rs 2 lakh crore market cap; RIL touches fresh record high

Jio Financial Services Ltd‘s market capitalisation exceeded Rs 2 lakh crore for the first time, driven by a 35 percent surge in its share price this year. Parent Reliance Industries also hit a record high on February 23.

At 10.30 am, shares of Jio Financial Services rose 8 percent to a record Rs 326. The stock gained for the fifth straight session, rising nearly 17 percent during the the period with mcap of Rs 2.08 lakh crore.

RIL hit a record high of Rs 2,989 intraday. The stock was trading at Rs 2,978 on BSE, up 0.5 percent from its previous close.

Currently, 39 firms are trading above Rs 2 lakh crore market capitalisation on local stock exchanges. Reliance Industries leads 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, Jio Financial reported a net profit of Rs 293 crore and a net interest income of Rs 269 crore. Its total interest income was Rs 414 crore and total revenue Rs 413 crore.

Jio Financial is shifting focus to secured lending and adopting a cautious approach to unsecured products in the current market and regulatory climate. It aims to boost its secured lending business with the launch of two new products: Device-as-a-service, offering operating and financing leases for devices like Airfiber, phones, and laptops through its subsidiary Jio Information Aggregator Services Ltd, and supply-chain financing, a short-term self-liquidating loan product to address suppliers’ working capital needs, set to launch in the next few quarters, according to B&K Securities report.

In January, Jio Financial Services and Blackrock Financial Management filed documents with the Securities and Exchange Board of India to launch 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 gained more than 21 percent.

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