Shares of Mukesh Ambani-led Reliance Industries Ltd witnessed strong buying interest and jumped more than 4% to hit an intraday high of Rs 2,754.90 on NSE as the company announced value unlocking via demerger of Jio Financial Services. RIL shares are less than 1.50% away from its life-time high of Rs 2,755 per share
Reliance shares hit a new milestone on Monday, by surpassing Rs 18 lakh crore market cap. At 10:32 AM, Reliance Industries Ltd's market cap was at Rs 18.61 lakh crore as details emerged on Jio Financial Services (JFS) demerger. A brokerage anticipated Jio Financial Services listing within 2-3 months while another brokerage pegged the listing price at around Rs 175-190 levels
Reliance Industries has received NCLT's go-ahead for the demerger of financial services business into Reliance Strategic Investments (RSIL), which would later be renamed as Jio Financial Services (JFS). The company has fixed July 20, 2023, as the record date for the demerger of the financial services arm of the conglomerate. The effective date of the scheme is July 1
Under the demerger scheme, Reliance Strategic Investments will allot one fully paid-up equity share of RSIL of face value of Rs 10 each, for every one share of Reliance Industries to the shareholders of the company whose names are recorded in the register of members and/or records of the depository as on the Record Date. RSIL will then be renamed as Jio Financial Services (JFSL)
Shareholders holding equity shares in physical form are required to send a letter to the Registrar and Transfer Agent of the Company Kfin Technologies containing details like name, address, email ID, PAN, contact number, and details of Demat account among others through email, post, speed post, courier, or hand delivery to reach to the KfinTech no later than five working days before the Record Date to enable RSIL to issue the resulting company new Equity shares in dematerialised form
On July 20, Reliance Industries will determine the equity shareholders of the company entitled to receive the resulting company's new equity shares of Reliance Strategic Investments Limited. RSIL has announced that Hitesh Kumar Sethia will head the new entity as MD and CEO
The RSIL board has recommended appointing Mukesh Ambani's daughter Isha Ambani and Anshuman Thakur as non-executive directors. Isha is also part of the leadership team at Reliance Retail Ventures Ltd. The RSIL board has approved the appointment of Rajiv Mehrishi, Sunil Mehta, and Bimal Manu Tanna as additional directors for a term of five years, up to July 6, 2028
Assuming that the investments in RIL shares represent 90% of JFS’s net worth, the book value per share of JFS would be Rs 190. "Our current SOTP-based target price of Rs 2,825 for RIL does not include the JFS value; hence, this event could lead to value-unlocking potential for RIL," Motilal Oswal Securities said
As Reliance shares rise, Mukesh Ambani's net worth has jumped to $90.3 billion, making him the 12th richest person in the world. Ambani surpasses French billionaire Francoise Bettencourt Meyers who has a net worth of $88.7 billion. So far in 2023, Mukesh Ambani's fortune has gone up by $3.22 billion
Source: Bloomberg Billionaires Index
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