Reliance Industries Share Price Soars with Jio Financial Services Demerger

Reliance Industries Ltd (RIL) experienced significant buying interest among Indian stock market investors on Monday morning, as the company announced plans to unlock value through the demerger of Jio Financial Services. The share price of Reliance opened higher today and reached a peak of ₹2756 per share on the National Stock Exchange (NSE), surpassing its previous all-time high of ₹2755 per share. In reaching this new high, Reliance also achieved a significant milestone by exceeding a market capitalization of ₹18 lakh crore. As of 10:43 AM by 10th July 2023, the market cap of Reliance Industries Ltd stood at approximately ₹18.62 lakh crore.

Reliance disclosed the record date for the demerger of Jio Financial Services on Saturday, which is set to take place on 20th July 2023. The company stated, “This is in addition to our letter dated July 6, 2023, informing that the Hon’ble National Company Law Tribunal, Mumbai Bench has approved the Scheme,” and further added, “According to the terms of the Scheme, Thursday, July 20, 2023, has been designated as the Record Date for determining the equity shareholders entitled to receive the Resulting Company New Equity Shares.”

Reliance Industries also provided the following information:

  • The Effective Date of the Scheme is July 1, 2023.

In accordance with the provisions of the Scheme, Reliance Strategic Investments Limited (“RSIL”) will issue and allocate 1 (One) fully paid-up equity share of RSIL with a face value of ₹10 (Rupees Ten) each for every 1 (One) fully paid-up equity share of ₹10 (Rupees Ten) each of the Company (“Resulting Company New Equity Shares”) to the shareholders whose names are recorded in the register of members and/or the records of the depository as of the Record Date.

While an official announcement regarding the share price of Jio Financial Services is yet to be made, global brokerage firm Jefferies has estimated it to be around ₹179, while JP Morgan has estimated it to be approximately ₹189 per share.

Regarding the listing date of Jio Financial Services, Avinash Gorakshkar, Head of Research at Profitmart Securities, expects it to take place by the end of August 2023, as it usually takes around one to one and a half months after the demerger record date.

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