Jio Financial Services, the de-merged financial services unit of Reliance Industries, hit the lower circuit for the third straight day on Wednesday amid sustained selling by passive funds.

The company’s shares were locked at ₹224.65 on the NSE after hitting the five per cent lower limit. On the BSE, the stock slid to ₹227.25 apiece.

In the past three trading sessions, the stock has lost 14.2 per cent of its value on the NSE, with market capitalisation falling to ₹1.43-lakh crore.

Index funds were expected to offload shares worth $465 million ahead of its exit from key indices post listing.

“Short-term selling pressure, would continue looking at seller mood in the exchange, which has increased multifold in the last three days... We stand neutral on the counter and wait for the AGM development, which can give a clearer picture on the outlook,” said Prashanth Tapse, Sr VP - Research, Mehta Equities.

Removal date

Jio Financial Services may now be removed from all relevant exchange indices from August 28 instead of August 23.

If Jio Financial hits lower circuit on Thursday, the removal date will be deferred by another three days. If it does not hit the lower circuit limit on either Wednesday or Thursday, but hits the lower circuit limit on the next day, the stock’s removal from all NSE and BSE indices will be deferred by another three days, an exchange note said on Tuesday.

The stock has a five per cent circuit filter for 10 trading days from the date of listing. There will be no intraday trading during this period.

The shares are still trading at a price which is above the ₹179-224 value that some analysts had earlier ascribed to the company. Analysts believe that the current price to book value is on the higher side compared with a lot of existing NBFCs and banks, but that reflects the potential that investors see in it to disrupt the fintech space.