Asia's richest person Mukesh Ambani is going to create panic in India's finance sector very soon. Reliance Industries is going to list its finance business as a separate company under the name of Jio Financial Services. With this, where the stock of Reliance Industries is expected to rise, Jio Financial Services is going to become the 5th largest bank in the country.
Reliance Industries had announced to make its finance business a separate company in October last year. Now the company can announce the strategy related to Jio Financial Services in its Annual General Meeting this year.
Will become the 5th largest 'Bank'
According to Jefferies, the market valuation of JFS could be between Rs 90,000 to Rs 1.5 lakh crore. In this way the share price of the new company can be around Rs.179. At the same time, Macquarie Research believes that after the formation of a new company, Jio Financial Services will be the 5th largest company in the country's finance sector.
Beyond this, only HDFC Bank, HDFC Bank, ICICI Bank and Axis Bank will be there. However, HDFC Bank and its parent company HDFC Limited are also to be merged this year, which after being united can become the country's largest finance company.
Competition with Bajaj Finance, Paytm, PhonePe
Analyst company Jefferies believes that in the coming days, Jio will give a tough competition to Bajaj Finance, Paytm and PhonePe, which are already present in the financial services market. Not only this, it will be the 5th largest company in terms of net worth.
If the size of Jio Financial is compared to government banks, then it will be a bigger finance company than Punjab National Bank and Bank of Baroda.
Jio, Reliance Retail will get benefit
Jio Financial Services will not have to struggle much in expanding its business after separation. The reason for this is that Reliance has a healthy base of customers. Jio of Reliance Industries is the largest company in the telecom sector today. According to January 2023, the number of its customers is around 42.6 crores.
At the same time, Reliance Retail has 17,225 stores in different segments across the country. There is a footfall of more than 20 crores in these every month. Therefore, when JFS will enter the market, it will not have to work hard for customer acquisition ie to bring customers to itself. Apart from this, the company has also recently acquired Metro Cash & Carry, which is working in the whole sale sector. Wali is the leading company.
Who will get how much share of JFS?
Now when Jio Financial Services will be separated from Reliance Industries, then the stock holders of the parent company will also be allotted stocks of the new company. According to the plan that the company had told for JFS last year, every stock holder of Reliance Industries would get a share of JFS in exchange of one stock.
Now the company has called a meeting of shareholders and creditors on May 2 regarding JFS. The company can list JFS in September this year. While the company's AGM is also around this.
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