JFSL hits lower circuit

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The long-awaited company of RIL group, Jio Financial Services, has finally hit the market and just in some time it hit the lower circuit. The exchange-derived price of the company was Rs 261.85 per share and it got listed on NSE at Rs 262 per share. However, it witnessed profit booking and some concerns regarding valuation which led to selling pressure on the share and it hit a lower circuit. Reliance is known to disrupt the industry in which it enteres, be it telecom or retail. It is believed that the company may use a similar playbook in the financial sector also but it might face constraints in the form of various rules, regulations and scrutiny from RBI as well as SEBI.

The company is stated to provide various services such as loans to consumers as well as MSMEs, payment solutions, insurance and even asset management. In the asset management space, it has entered into a 50-50 partnership with Blackrock. After the spin-off, JFSL has become the 33rd biggest company in India with a market cap of Rs 1.68 lakh crore.

Coming to the IPO market, Pyramid Technoplast is subscribed 5.87 times. It is an IPO on the main board with a size of Rs 153.05 crore. Its price band is Rs 151-Rs 166 per share. Out of total IPO, Rs 91.3 crore is  fresh issue while Rs 61.75 crore is offer for sale. Its GMP is around Rs 23 per share.

Coming to the SME board there is a lot of action.

Sungarner Energies has opened up for subscription with a share price of Rs 83. The IPO will remain open till August, 23, 2023. It is a small IPO as the company is looking to raise Rs 5.31 crore. Investors showed a good response as just on 1st day it got subscribed 2.65 times. However, in a grey market, it is not having any premium.

Crop Life Science got subscribed 2.35 times and it is having a negative grey market premium. Its GMP is (-Rs 4 per share).

Bondada Engineering is getting a good response as it got subscribed 17.54 times and in the grey market it is enjoying a premium of Rs 26 per share.