Jio Financial Services stock listing today. JFS share exclusion date from Nifty, Sensex & more

Jio Financial Services (JFS), the demerged financial business of Reliance Industries, whose shares got credited to eligible shareholders last week, will make its stock market debut on Monday. The discovered share price for JFS based on the record date of the corporate event was Rs 261.85, which was much higher than the Street estimates of Rs 160-170 share price. It would be seen how the stock reacts at listing today.

The demerged financial services arm would unlock value for RIL shareholders and "give them an opportunity to be a part of a new growth platform," RIL recently said in its annual report.

With this listing, the JFS stock will be removed from Nifty and Sensex after the end of the third day of its listing, which is August 24. The exclusion date would, however, be deferred in certain scenarios. As per Abhilash Pagaria of Nuvama Institutional Equities, there could be passive outflows on the counter.

"Assuming the hypothetical price scenario for JFS on its Trading (T) + third day of listing - at Rs 261.8 Share - Nifty index passive trackers could sell around 9 crore shares, which is equivalent to approximately $290 million. Alongside Sensex index trackers could sell 5.5 crore shares, which is equivalent to $175 million," Pagaria said.

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This is calculated at the current free float and assuming JFS weightages of less than 1 per cent in Nifty and around 1 per cent in Sensex.

"In case, during the first two days of these three days, the spun-off entity hits the price band on both days, then the exclusion date shall be deferred by another three days. After observing two consecutive days of the spun-off entity not hitting the price band, the spun-off entity shall be removed after the third trading day of such observation. If on such a third day spun-off entity again hits the price band, the exclusion of such stock shall not be deferred any more," Pagaria Nuvama noted.

To recall, July 20 was the record date for the demerger of Reliance Industries' (RIL) demerged financial services business. The discovered price of 261.85 was based on the difference between RIL's close of Rs 2,841.85 on July 19 and RIL's ex-demerger price of Rs 2,580 in the pre-open session. Shares of JFS were credited to eligible Reliance Industries shareholders in 1:1 ratio last week.

Meanwhile, Jio Financial is set to be delisted from FTSE Indices, marked at zero value, on August 21. To simplify, FTSE passive trackers will assign zero value to JFS shares, gradually removing them post Jio's trading initiation. MSCI Index will uphold JFS shares.