Shares of Jio Financial Services Ltd rose sharply in Monday’s trade to scale their record high levels. The stock jumped 5.14 per cent to hit an all-time high of Rs 351. At this price, the scrip has gained 71.51 per cent from its one-year low value of Rs 204.65, a level seen on October 23 last year.
Today’s upward move in the share price came after it was reported that Jio Payments may enter the soundbox segment, a feature similar to the Paytm Soundbox commonly used in retail outlets.
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In a separate development, Jio Financial said, “Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of Jio Financial, has informed that it has sold its 100 per cent equity stake in Jio Infrastructure Management Services Ltd (JIMSL) to Reliance Strategic Business Ventures Ltd (RSBVL) for an aggregate cash consideration of Rs 0.92 crore.”
RSBVL, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), is engaged in the business of trading of goods and holding strategic interests in businesses and providing business support services. JIMSL, a wholly-owned subsidiary of RIIHL, is in the business of project management services. JIMSL had a turnover of Rs 4 crore during FY 2022-23 and net worth of Rs 1.23 crore as on March 31, 2023, contributing 9.60 per cent and 0.001 per cent of the consolidated turnover and net worth of the company respectively for FY23.
Accordingly, JIMSL ceased to be a step down subsidiary of the company, it stated. “The transaction is a related party transaction and is on an arm’s length basis. The promoter and promoter group are not interested in the above transaction,” Jio Financial added.
Earlier this month, the financial services arm of RIL clarified that it has not been in any negotiations to acquire Paytm wallet.
“With reference to the captioned subject (“Mukesh Ambani to acquire Paytm wallet? Jio Financial shares soar after report”), we clarify that the news item is speculative and we have not been in any negotiations in this regard,” it stated in an exchange filing.
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On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 59.57. A level below 30 is defined as oversold while a value above 70 is considered overbought.
DRS Finvest founder Ravi Singh said, “The stock looked strong on daily charts and it may see Rs 380 level in the near term. Keep stop loss placed at Rs 325.”
On BSE, around 35.02 lakh shares were seen changing hands today. The figure was lower than the two-week average volume of 51.86 lakh shares. Turnover on the counter came at Rs 121.05 crore, commanding a market capitalisation (m-cap) of Rs 2,20,268.36 crore.
