Shares of the demerged financial services business of the Mukesh Ambani-led Reliance Industries were locked at the 5% lower circuit for the second straight trading session. Jio Financial Services Ltd (JFSL) shares opened at Rs 236.45 apiece on Tuesday, 5% lower than the previous closing price of Rs 248.90 on the National Stock Exchange (NSE).

JFSL, formerly Reliance Strategic Investments, debuted on the bourses on August 21 at Rs 262 per share on the NSE and Rs 265 on the Bombay Stock Exchange (BSE), a marginal increase from its discovered price of Rs 261.85 per share. However, JFSL shares hit a 5% lower circuit shortly after being listed on the NSE to Rs 248.90 due to heavy selling and multiple block deals on the exchange.

JFSL shares will trade in the Trade-To-Trade (T2T) segment in the T group of securities list for 10 trading days. Investors can only trade on a delivery basis; no intraday trading will be allowed. After three days of listing, the scrip will also be removed from all indices. 

Analysts warned investors to trade cautiously as the stock is expected to be volatile for the first few trading days and could see heightened moves on either side. Existing institutional and retail investors are divesting their stakes in the company, and since the stock is in the T segment, institutional selling is dragging the price down.

The $19 billion valuation of the non-banking finance company (NBFC) is based on future growth expectations and its 6.1% stake in RIL. Jio Financial Services’ market capitalisation makes it the country’s second-largest NBFC after Bajaj Finance.