Key Points
While Jio is expected to be amongst the leading financial players for different segments of financials in 10 years, investors should still wait for a while before buying it."ETMarkets.com..
Pankaj Murarka, Founder, Renaissance Investment, says there will be some euphoria initially on the Jio Financial listing day or a few days post listing and that should settle down over a period of time in the next four to six weeks of trading where some of those stocks might move from weaker hands to much more stronger hands and there will be an impact of Jio Financial moving out of index, a lot of index funds might be selling during that period of time...
But now that Jio Financial Services will be listed on the bourses on Monday, will the Street look at it as a precursor to other demergers perhaps retail and then Jio?..
It is a pretty large conglomerate at close to $300 billion of market cap, on their size and scale to move the needle they need to do projects which are more like $10-20 billion at least to say the least, to really have an impact on financials and move the needle on the Reliance balance sheet...
But having said that, given that all those businesses that they intend to build are at incipient stage, they will scale rapidly but the current valuation that is being talked about or what is being projected or estimated, factors in a fair degree of very strong execution over medium term which would give them a benefit of doubt given the kind of management pedigree and given the kind of operating management team that they have built...
