Jio Financial Services share price gained over 2% on Thursday, extending its rally for the third consecutive session amid heavy buying momentum. Jio Financial share price rose as much as 2.4% to ₹222.35 apiece on the BSE.
On March 6, approximately 1 crore equity shares of Jio Financial Services were traded across Indian stock exchanges, compared to a trading volume of 4 crore shares in the previous session.
Jio Financial stock price has rallied over 10% in the past three session.
The gains in Jio Financial shares came after the company announced plans to acquire the remaining shares of Jio Payments Bank from State Bank of India (SBI).
Jio Financial Services holds a 82.17% stake in Jio Payments Bank. The company’s board, on March 4, approved the acquisition of the remaining stake from its joint venture partner SBI.
“The Board of Directors of the Company, at its meeting held today, have approved acquisition of 7,90,80,000 equity shares of JPBL from SBI for an aggregate consideration of ₹104.54 crore. Post this acquisition, JPBL will become a wholly owned subsidiary of the Company,” the billionaire Mukesh Ambani-owned Jio Financial Services said in a regulatory filing on Tuesday.
The acquisition is subject to approval from the Reserve Bank of India (RBI) and is expected to be completed within 45 days post receipt of RBI approval, the company said.
Jio Financial Services Stock Price Trend
Jio Financial share price has fallen over 11% in one month and declined 27% on a year-to-date (YTD) basis. The stock of Reliance Industries’ NBFC subsidiary has dropped 34% in six months and 32% in the past one year.
According to Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi, Jio Financial share price is witnessing a short-covering rally after the recent sell-off.
“We can see short-covering in Jio Financial shares. A close of ₹225 level will attract more buyers in the stock. If Jio Financial stock closes above ₹225 level, the short-term target on the upside will be ₹240 – 245. Stop loss should be kept at ₹210 – 215 levels,” Dongre said.
At 11:10 AM, Jio Financial Services shares were trading 2.05% higher at Rs221.60 apiece on the BSE.
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