***Jefferies On Jio Financial Services Derived price of Rs 262 per share*** implies market cap of Rs 1.6 lakh crore and core-book valuation at 1.9 times price-to-book. Value of a 6.1% stake in RIL is Rs 1 lakh crore, 63% of the market cap, promoters hold 46% stake, according to Jefferies note
Key Areas Of Business
-Focus In the information memorandum, Jio Financial Services' management has identified that core areas of businesses will include retail lending, merchant lending, payments bank operations, payments solutions and insurance broking.
-Consumer lending will include financing for consumer durables sold through retail stores to begin with and will add more secured loans later. Merchant lending vertical will focus on merchants in grocery, digital, fashion and pharma formats.
-In SME segment, it will focus on working capital loans.
-It will build payments platforms focused on merchants, ramp up Jio Payments Bank and build insurance broking. It has also set up a JV with Blackrock to launch AMC business and may other businesses.
***Shareholding, Management Team And Board of Directors The shareholding of Jio Financial Services replicates that of its erstwhile parent, RIL, with promoters holding a 46% stake***
KV Kamath is the chairperson (erstwhile chief executive officer of ICICI Bank Ltd. and on board of RIL).
Hitesh Sethia, who was earlier with ICICI Bank, is the CEO and many chief experience officers have been appointed, including Charanjit Attra as chief operating officer, Manish Singh as chief human resources officer AND Abhishek Pathak as chief financial officer.
