Shares of Reliance Industries Ltd (RIL) are set to undergo a significant corporate event today as the company demerges its financial services business. This article provides essential details about the demerger, its impact on RIL shares, and the inclusion of Jio Financial Services in Nifty.
1. Record Date and Share Allotment
- Today is the record date for the demerger, meaning eligible RIL shareholders will receive one share of Reliance Strategic Investment Limited (to be renamed as Jio Financial Services) for every one Reliance Industries share they own.
- The shares of Jio Financial Services will be allotted to those RIL shareholders whose names are recorded in the register of members or the depository as of today.
2. Impact on RIL Shares
- Due to the demerger, 6.1 per cent of treasury shares in RIL will be transferred to the demerged entity, which may impact the stock price of Reliance Industries.
- Investors can expect to see the impact of the corporate event on RIL shares when the market opens on Thursday morning.
3. Special Pre-Open Session (SPOS) and Nifty Inclusion
- There will be a special pre-open session from 9 am to 10 am, during which RIL shareholders can only place, modify, or cancel orders.
- Jio Financial Services will be added to Nifty, which consists of 51 stocks, at a constant price.
- The constant price for JFS will be derived from the difference between Reliance Industries’ closing price on Wednesday and the price discovered during the special pre-open session on the demerger day.
- This constant price will be considered daily for Nifty index value computation until Jio Financial Services gets listed on the stock exchanges.
- Once listed, Jio Financial Services will remain as the 51st stock in the Nifty 50 index for three days, allowing investors to adjust their portfolios and stabilize volatility.
4. Listing and Expected Price
- Jio Financial Services (JFS) will be temporarily listed on stock exchanges, including NSE, for the next 2-3 months.
- As per NSE Indices methodology, JFS will be removed from the index after the end of the day (EOD) on the third day of its listing.
- The expected price of Jio Financial Services at the time of listing is anticipated to be in the range of Rs 150 to Rs 190.
The demerger of Jio Financial Services from Reliance Industries is an important corporate event that will impact RIL shares and introduce a new entity to the stock market. Investors and shareholders need to be aware of the upcoming changes and take necessary actions accordingly.