Reliance Industries shares gain 3%; what
is fueling RIL stock, should you buy?

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Reliance shares gain

Reliance Industries' share price rallied 3.5% on March 31, 2023 after the Mukesh Ambani-led company said secured creditors, unsecured creditors and shareholders would meet on May 2 to approve the proposed demerger of Reliance Strategic Ventures. [{ "selector": ".pcasj-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 440px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".enfxt-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Demerger of Reliance
Strategic Ventures

After the proposed demerger of Reliance Strategic Ventures is approved, the financial services subsidiary of the RIL, would be renamed Jio Financial Services, said the company in a statement. [{ "selector": ".nokkl-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 458px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".lpalx-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

From Reliance Strategic
Ventures to Jio Financial
Services

"Benefits that shall accrue on the demerger of the financial services business will be the creation of an independent company focusing exclusively on financial services and exploring opportunities in the sector," said RIL in an exchange filing. [{ "selector": ".fpmpw-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 451px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".lonea-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Independent company can attract different investors

According to Reliance Industries, the independent company can attract different sets of investors, strategic partners, lenders and other stakeholders having a specific interest in the financial services business. [{ "selector": ".aztxn-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 444px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".qtfzs-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Significance of the
proposed demerger

"A financial services company can have a higher leverage as compared to the Demerged Company for its growth and, unlocking the value of the demerged undertaking for the shareholders of the demerged company,” said RIL. [{ "selector": ".ftzgx-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 455px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".zoiuo-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Reliance AGM 2023

RIL was progressing towards the listing of Jio Financial Services, which is expected to happen in the coming months, said research firm Nomura. It expects Reliance Industries to lay down a strong roadmap for growth in the financial sector in the coming AGM. [{ "selector": ".gmmfd-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 429px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".jiutg-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Reliance Industries
share price

Reliance Industries shares were last trading 3.7% higher at Rs 2,317 on the National Stock Exchange (NSE). [{ "selector": ".wglpq-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(-163.5859165384312px)", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".osmic-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Reliance Industries
share price history

So far in 2023, Reliance shares have tanked around 10%, underperforming benchmark Nifty which has tumbled around 5%. Over the last one year, RIL shares have fallen around 12%. The stock has doubled investors' money in the past five years by rallying over 100%. [{ "selector": ".pxrxr-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 432px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".egqzl-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Should you buy
Reliance Industries shares?

Nomura has a "buy" call on RIL stock, with a target price of Rs 2,850, which implies an upside of around 23% from the current market price. The recent decline in the share price was underpinned by the index-related selloff but the outlook across the company’s businesses remains strong, the brokerage firm said. [{ "selector": ".ipzkw-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(-168.5859165384312px)", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".fdoss-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

Disclaimer

The content in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position [{ "selector": ".wnzzj-a", "duration": "500ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "transform": "translateY(calc(600px - 477px))", "opacity": "1"}, {"offset": 1, "transform": "translateY(0)", "opacity": "1"} ] }, { "selector": ".denec-a", "duration": "1000ms", "fill": "forwards", "delay": "0ms", "keyframes": [ {"offset": 0, "opacity": 0}, {"offset": 1, "opacity": "1"} ] }]

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Reliance Industries shares gain 3%; what is fueling RIL stock, should you buy?

Produced by: Harshita TyagiDesigned by: Pragati

Reliance shares gain

Demerger of Reliance Strategic Ventures

From Reliance Strategic Ventures to Jio Financial Services

Independent company can attract different investors

Significance of the proposed demerger

Reliance AGM 2023

Reliance Industries share price

Reliance Industries share price history

Should you buy Reliance Industries shares?