RIL-Jio Financial Services Demerger LIVE: Special pre-open session by NSE, BSE today

RIL-Jio Financial Demerger LIVE: Jio Financial Services valuations expectations

Rajesh Sinha, Sr. Research Analyst at Bonanza Portfolio pointed out that Jio Financial Services (JFSL) owns 6.1% in Reliance Industries (RIL), which is valued at ₹1.1 lakh crore.

“This would represent a substantial portion (nearly 90%) of JFSL’s net worth. Excluding investments in RIL shares, JFS’ net worth would be around ₹10,000 crore. As per street estimates, JFSL will list at a price of ₹150-190 per equity share,” said Sinha.

RIL-Jio Financial Demerger LIVE: Jio Financial Services to be added to Nifty50, Sensex other indices post demerger

After the demerger, Jio Financial will be temporarily added to Nifty50 along with 18 other indices of NSE, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy, and Nifty Oil & Gas without replacing any stocks. This inclusion is due to the change in the index methodology regulations laid out by the exchange when considering mergers and demergers in index constituents.

Jio Financial will also be added to 18 of the S&P BSE indices also, including the S&P BSE Sensex, starting July 20 for a period of three days. After three days, it will be dropped from all the indices at the last traded price.

RIL-Jio Financial Services Demerger LIVE: Special pre-open session for Reliance shares today; here’s what will happen

Shares of Reliance Industries (RIL) will not be available for normal trading for the first 45 minutes on Thursday, July 20 as a result of the demerger of its financial services arm. RIL shares will go through a special pre-open call auction tomorrow on the demerger of Jio Financial Services Ltd (JFSL) between 9:00 am to 10:00 am. During this session, one can only place, cancel, or modify the orders.

The price at which the highest orders will be matched becomes the opening price of the stock at 10 am when normal trading resumes for RIL. The difference between Wednesday’s closing price of RIL and the price derived during the special session will be treated as the “constant price” for Jio Financial Services. On Wednesday, shares of RIL settled 1.15% higher at ₹2,853 apiece on the NSE. Read more here

RIL-Jio Financial Services Demerger LIVE: BSE, NSE to conduct special pre-open session for RIL price discovery 

BSE and NSE will conduct a special pre-open session today for Reliance Industries to discover its price after the demerger. The previous session’s closing price of RIL, which is ₹2,853.00 on NSE will be the reference price for this session.

RIL-Jio Financial Services Demerger LIVE: Demerger ratio set at 1:1 

The ratio for demerger of Jio Financial Services from Reliance Industries (RIL) is set at 1:1. This means for each share of RIL held before the record date on July 20, the company will award one share of JFSL. JFSL is expected to get listed in the next two-three months.

Experts pointed out that Jio Financial Services will hold 413 million treasury shares of RIL, accounting for approximately 6.1% of RIL’s total outstanding shares. This means JFSL will own a 6.1% stake in RIL.

RIL-Jio Financial Services Demerger LIVE: Record date for RIL-Jio Financial Services demerger today

The record date for the Reliance-Jio Financial demerger is today, July 20, 2023.

RIL-Jio Financial Services Demerger Live: Jio Financial Services to be demerged from RIL today

Jio Financial Services (JSFL) is going to be demerged from Reliance Industries (RIL) on Thursday (July 20). RIL on July 8 announced in a BSE filing that the National Company Law Tribunal approved the planned demerger of Jio Financial Services. It announced the record date of July 20, 2023, for the same.