Shares of Reliance Industries rose half a per cent on Wednesday to hit a new 52-week high of Rs 2,844.90 on NSE. The Mukesh Ambani-led conglomerate's market was over Rs 19.18 lakh crore. In the last five trading sessions, RIL share price has gone up around 1.7% amid a positive outlook from share market analysts
Today is the last date to buy Reliance shares in order to be eligible for getting Jio Financial Services shares. Reliance Industries will turn ex-date on July 20 for the proposed demerger of its financial services business. Shareholders who wish to get the spun-off entity, to be renamed Jio Financial Services Limited, must buy the Reliance Industries shares today itself
Reliance Industries Ltd (RIL) shareholders, who would be holding the company shares on June 20, would be allotted shares of demerged entity Reliance Strategic Investments (to be renamed as Jio Financial Services or JFS) in the 1:1 ratio. JFS shares are likely to debut on stock exchanges in the next 2-3 months at price of anywhere between Rs 150 and Rs 190, according to market analysts
The National Stock Exchange of India will conduct a special pre-open session in Reliance Industries stock on Thursday, on account of the demerger of the financial services business of the company. JFS shares will be included on indices such as Nifty temporarily for price discovery, as RIL turns ex-date for the demerger. A dummy ticker will be created for the same after today's market hours, as per the NSE's recent index methodology
As 6.1% of treasury shares in Reliance Industries is being transferred to the demerged entity JFS, the corporate event will impact Reliance shares. JFS would also be added to Nifty (51 stocks to trade on index) at a constant price. This constant price would be derived from the difference between RIL closing price today, and the price derived during special pre-open session (SPOS) on Thursday. For example, if Reliance Industries shares settle at Rs 2,850 today and trade at Rs 2,700 in the special pre-open session, the value for JFS would be Rs 150 per share
The special session for JFS price discovery will take place between 9 am and 9:45 am. After the closure of SPOS, discovered price and indicative price of dummy would be calculated simultaneously. The newly listed symbol would be a part of the index for a temporary period. As per NSE Indices methodology, Jio Financial will be removed from all the indices after the close of trading on the 3rd day of listing at the market-determined price
Domestic brokerage Motilal Oswal Financial Services 'maintained' a buy call on RIL stock post the demerger news with a target price of Rs 2,825 per share. Axis Securities also recommended investors to buy Reliance Industries shares before the record date i.e. 20th July as it believes it to be a more economical way to buy Jio Financial Services which is likely to list at Rs 160 per share.'
Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Jefferies at Rs 179, while Centrum Broking has a range of Rs 157-190. JPMorgan, which has an overweight rating on RIL with a target price of Rs 2,960, believes that the implied value could move higher once the business strategy and targets are made public
Nuvama estimates a value of Rs 168 per share for JFS, which is currently a part of non-operating assets in its SoTP valuation. It ascribed a value of Rs 323 per share to non-operating assets. In addition, it valued treasury shares at Rs 168 per share based on RIL’s closing price on July 14. "We argue that RIL stock could be least impacted by this demerger and instead see an upside of 3-5%," it said
Axis Securities recommended investors to buy Reliance Industries shares by July 19 as it believes it to be a more economical way to buy JFS which is likely to list at Rs 160 per share. The brokerage values Jio Financial Services at the treasury stock valuation of Rs 1,08,597 crore at 1-time RIL’s treasury stock valuation. The company’s total outstanding shares stand at 676.6 crore, implying each share’s valuation would be Rs 160 per share, it added
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