Jio Financial Services market cap crosses ₹ 2 lakh crore
Jio Financial’s market cap crosses ₹ 2 lakh crore: The company was separated from RIL 6 months ago, Reliance also made an all-time high of ₹ 2,989.
The market cap of Jio Financial Services Limited (JFSL) has crossed ₹2 lakh crore for the first time. Today JFSL shares hit an all-time high of ₹347 with a rise of 14.50%.
However, after the day’s trading, the company’s shares closed at ₹333.90 with a rise of 10.18% on Bombay Stock Exchange (BSE). At this price the market cap of the company is Rs 2.12 lakh crore.
At the same time, Reliance Industries Limited (RIL) also made an all-time high of ₹ 2,989. After trading throughout the day, RIL shares fell slightly below its high and closed at ₹ 2986.35 on BSE with a rise of 0.78%. Reliance is the largest company in the country with a market cap of Rs 20.19 lakh crore.
JFSL was listed on the stock exchange on 21 August 2024.
Six months ago, Jio Financial Services was separated from its parent company Reliance Industries Limited (RIL). After demerger, the share price of Jio Financial was fixed at Rs 261.85 under the price discovery mechanism.
After this, on August 21, 2024, the company’s shares were listed on the Bombay Stock Exchange (BSE) at ₹ 265. At the same time, the share was listed at ₹ 262 on the National Stock Exchange (NSE).
Plan to start consumer and merchant lending business
Jio Financial plans to start consumer and merchant lending business. Global financial services giant Macquarie, in its report last year, had described Reliance’s financial services business as a major threat to Paytm and other fintech companies in terms of market growth.
Reliance’s financial services business includes 6 companies…
Reliance Industrial Investments and Holdings Limited
Reliance Payment Solutions Limited
Jio Payments Bank Limited
Reliance Retail Finance Limited
Jio Information Aggregator Services Limited
Reliance Retail Insurance Broking Limited Investment
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by the stock price.
Market cap is used to categorize shares of companies to help investors select them according to their risk profile. Like large cap, mid cap and small cap companies.
Market Cap = (number of shares outstanding) x (price of shares)
How does market cap work?
Whether a company’s shares will yield profit or not is estimated by looking at many factors. One of these factors is market cap. Investors can find out how big a company is by looking at the market cap.
The higher the market cap of the company, the better the company is considered. Stock prices rise and fall according to demand and supply. Therefore, market cap is the publicly perceived value of that company.
How does market cap fluctuate?
It is clear from the market cap formula that it is calculated by multiplying the total number of issued shares of the company by the stock price. That means if the share price increases then the market cap will also increase and if the share price decreases then the market cap will also decrease.
