Reliance Industries shares trade ex-demerger, jump 1% after special pre-open session

Shares of Reliance Industries Ltd (RIL) jumped over 1 per cent in Thursday's trade following its one-hour special pre-open session. The stock was trading at Rs 2,612 on NSE at 10.09 am, up 1.24 per cent. This was after the scrip settled at Rs 2,580 (ex-financials) as it turned ex-date for demerger. This was the discovered price for RIL ex-finaicals. For Reliance Strategic Investments Limited (to be renamed as Jio Financial Services or JFS), the derived share price was Rs 261.85.

This was based on the difference between RIL's previous close of Rs 2,841.85 and the price discovered at Rs 2,580 in the pre-open session. For JFS, this constant price will stay.

In the first 45 minutes of the one-hour trading session, investors were allowed to enter, modify or cancel the orders for Reliance Industries. The order matching period kicked off immediately after completion of order collection period for the next 10 minutes. Finally, the orders were matched at a single (equilibrium) price that is the open price. Given a delayed trading in RIL, computation of Nifty50 index level was based on 49 stocks during the pre-open session.

"This derived price of Jio Financial will be considered on a daily basis for Nifty index value computation until it gets listed on the bourses. Once Jio Financial shares get listed on exchanges, the stock will remain as the 51st stock in Nifty 50 index for three day. This will help volatility to settle in and let investors adjust their portfolios," Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.

With the special session over, Reliance Industries F&O (Futures and Options) contracts also became available for trading.

Reliance Strategic Investments Limited (to be renamed as Jio Financial Services or JFS),the demerged entity of Reliance Industries reported a consolidated net profit after tax for the first quarter stood at Rs 331.92 crore on a total income of Rs 414.13 crore. Total income for the year-ended March 31 stood at Rs 44.84 crore and profit at Rs 31.25 crore.

On a standalone basis, net profit for the quarter came in at Rs 145.47 crore and total income at Rs 214.57 crore.

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