Reliance Industries Unlocks Value with Jio Financial Services Demerger

Reliance Industries Ltd (RIL) witnessed a significant surge in its share price following the announcement of the demerger of Jio Financial Services. The company revealed that the record date for the demerger has been set for 20th July 2023. The listing date for Jio Financial Services is expected to be by the end of August 2023.

Share Price Performance

Reliance share price opened with an upside gap and reached an intraday high of ₹2716.70 apiece on NSE. This is less than 1.50% away from its all-time high of ₹2755 per share.

Jio Financial Services Demerger Record Date

On Saturday, Reliance officially declared the record date for the demerger of Jio Financial Services. The company stated, “This is in furtherance to our letter dated July 6, 2023, intimating that the Hon’ble National Company Law Tribunal, Mumbai Bench has sanctioned the Scheme.” The record date has been fixed as Thursday, July 20, 2023, for determining the equity shareholders of the Company entitled to receive the Resulting Company New Equity Shares.

Shareholders’ Entitlement

As per the Scheme, Reliance Strategic Investments Limited (RSIL) will issue and allot 1 fully paid-up equity share of RSIL with a face value of ₹10 for every 1 fully paid-up equity share of ₹10 each of the Company to the shareholders whose names are recorded in the register of members and/or records of the depository as on the Record Date (July 20, 2023).

Estimated Jio Financial Services Share Price

Although the official announcement regarding the Jio Financial Services share price is pending, global brokerage firm Jefferies has estimated the share price to be around ₹179, while JP Morgan predicts it to be approximately ₹189 per share.

Expected Listing Date for Jio Financial Services

Following the demerger record date, Avinash Gorakshkar, Head of Research at Profitmart Securities, expects the listing of Jio Financial Services to take place by the end of August 2023. He stated, “We can expect Jio Financial Services to be listed after approximately one to one and a half months from the demerger record date.”

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