What to expect from Jio Financial stock in near term? Sushil Choksey answers

economictimes.indiatimes.com:

«One needs to watch out how Reliance integrates the financial service arm with the retail and telecom business to procure supply chain discounting or merchant vendor discounting or consumer financing,» says Sushil Choksey, Director, Indus Equity Advisors.How much value unlocking do you see with this demerger for Reliance and its shareholders? There is going to be a significant amount of unlocking, would not you agree?Yes, it is certainly a very positive event for Reliance shareholders because not only 6.1% Reliance treasury shares are being transferred here and that in today's market value at closing price is Rs 1,14,000 crores approximately plus Rs 28,000 crores of net worth which is currently owned and all the related financial service or insurance and all the license and maybe the payment bank is part of this entity. So, one needs to watch out how Reliance integrates the financial service arm with the retail and telecom business to procure supply chain discounting or merchant vendor discounting or consumer financing.

So, based on all these, we will have to see how the AUM can be enabler to make a 2 lakh, 3 lakh crore of a lending book within a year or two. It is possible because of Reliance but the thing is that ultimately how much of AUM can build because based on net worth, Reliance will be able to borrow from banks or market via bonds or commercial paper or global institutions where lending book is concerned or Reliance themselves may deploy certain capital additional over the net worth for creating this book because there would be arbitrage between what they can borrow and what they can lend.