NSE to conduct special pre-open session for RIL on July 20 as Jio Financial set to enter Nifty 50

National Stock Exchange on Monday said Mukesh Ambani-led Reliance Industries Ltd's demerged entity Jio Financial Services Ltd will be included in Nifty 50, other indices.

NSE said it will conduct special pre-open session for RIL on July 20 as Jio Financial is set to enter the coveted Nifty 50.

"NSE vide its circular NSE/CMTR/57524 dated July 12, 2023 has announced special pre-open session to be conducted for Reliance Industries Limited (RELIANCE) in Capital Market segment on July 20, 2023 on account of demerger of its financial services business into Reliance Strategic Investments Limited (‘spun-off entity’ to be renamed as Jio Financial Services Limited)," said the stock exchange in a circular.

"In accordance with the index methodology, spun off entity shall be included in following indices effective from July 20, 2023 (close of July 19, 2023)," added NSE.

Apart from Nifty 50, Jio Financial Services will be included in 18 other indices, including Nifty 100, Nifty 200, Nifty 500, said NSE.

Nifty50 Equal Weight, Nifty100 Equal Weight, Nifty500 Multicap 50:25:25, Nifty Commodities, Nifty Energy, Nifty India Manufacturing, Nifty Infrastructure, Nifty LargeMidcap 250, Nifty Low Volatility 50, Nifty Mobility, Nifty Oil & Gas, Nifty Total Market, Nifty100 ESG, Nifty100 Liquid 15, Nifty100 Low Volatility 30 are the other indices where Jio Financial will be included.

Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Centrum Broking has set a range of Rs 157-190. Jefferies has estimated that Jio Financial Services' share price would be around Rs 179. While it isn't clear when Jio Financial will be listed, speculations are doing rounds that it might get listed before Diwali.

Last week, NSE said RIL's futures and options (F&O) contracts for next three months will expire on July 19 in the wake of July 20 being fixed as record date for Jio Financial demerger.

Earlier this month, RIL had fixed July 20 as the record date for the purpose of determining the shareholders who are entitled to receive shares of Reliance Strategic Investments Ltd (RSIL), which will be renamed as Jio Financial Services (JFSL).

Every Reliance shareholder will get one share of the new firm for every share held in the parent.

The spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.

The board of directors of the new company at a meeting held on July 7 approved the appointment of new directors. Isha Mukesh Ambani, the elder daughter of the billionaire, has been appointed as non-executive director. Alongside, Reliance executive Anshuman Thakur too has been appointed as non-executive director.

Former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors.

Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for a period of three years.