Reliance’s shares closed at Rs 2,840 a share on Wednesday, up 0.62 percent, and the company’s market capitalization stood at Rs 19.21 lakh crore as of July 19.
The NSE conducted a special pre-open session (SPOS) today from 9 a.m. to 10 a.m. to determine the price of Reliance shares. The discovered price for Jio Financial Services was Rs 261.85, while Reliance settled at Rs 2,589 per share.
On Thursday at 12 p.m.Reliance Industries ltd(RIL) shares were trading at Rs 2,620.25 a share on the BSE.
The Group declared on July 8 that the National Company Law Tribunal (NCLT) agreed to the planned demerger, and July 20 was the record date for the allotment of equity shares. Today, Reliance demerged its finance unit, Jio finance Services Ltd (JFSL).The share ratio for the demerger process is 1:1, which implies that each RIL shareholder will get one share in JFSL for every one RIL share they own.
Following the demerger, JFSL’s total outstanding value will be 635.32 crore, bringing the company’s total market capitalization to Rs 1.66 lakh crore.
This new stock (JFSL) is not tradeable in exchange. It will stay in the Nifty 50 at the same price till the listing date is announced. It will be the Nifty50’s 51st stock and the Sensex’s 31st.
Jio finance service will be removed from the index three days after it is listed as a separate entity and Reliance’s weight will be restored. The allocation and listing dates are yet to be revealed.
JFSL share price might list higher or lower than Rs 261.85 based on the pre-open session that exchanges would have that day.
Prior to the demerger, the business allocated 95.32 percent of RIL’s cost of acquisition and 4.68 percent to Jio Financial Services. This means that an investor who purchased RIL shares on July 19 is considered to have paid Rs 133 (i.e. 4.68 percent from the previous day closing price) for Jio Financial Services.As a result, those investors are now enjoying a 100 percent gain.
Jio Financial Services (previously Reliance Strategic Investments Limited) is a holding company for Reliance Payment Solutions, Reliance Retail Finance, and Reliance Retail Insurance Broking Ltd, among others.
Written by Omkar Chitnis
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