New Delhi: National Stock Exchange (nse) has scheduled a special pre-open session on July 20 Reliance Industries Ltd. due to the merger of its financial services business, Reliance Strategic Investments Ltd. As part of this merger, the separate entity, Reliance Strategic Investments Limited (RSIL), will be demerged and renamed. Live Financial Services (JFSL).
The objective of this session is to determine the price discovery for Reliance Industries shares. The difference between the share price received during this session and the closing price of Reliance Industries on July 19 (a day before the pre-dissolution date) will establish the ‘stable price’ at which Jio Financial will be incorporated.
Reliance Industries will continue to be its constituent smelly index even after partition
In addition, the separate entity, Jio Financial Services, will be added to various Nifty indices including Nifty 50, Nifty 100, Nifty 200 and Nifty 500 from July 20, NSE Indices said in a Monday statement.
As a result of this demerger, a total of 51 stocks will be available for trading on Nifty 50 for at least three days starting July 20, as the demerged entity will become part of the index.
Here are some frequently asked questions on RIL demerger:
What is demerger ratio?
The demerger ratio is 1:1. This means that for every share of Reliance Industries you hold, you will get one share of Jio Financial Services.
How can I get my shares of Jio Financial Services?
If you are a shareholder of Reliance Industries as on the record date of July 20, 2023, you will automatically receive your shares of Jio Financial Services. You do not have to do anything.
What will happen to the share price of Reliance Industries?
It is difficult to say what will happen to the share price of Reliance Industries after the demerger. Some analysts believe that the share price may fall as investors sell their shares of Reliance Industries to get shares of Jio Financial Services. Others believe that the share price may remain stable or even rise as investors are seeing the potential of Jio Financial Services.
What is the future of Jio Financial Services?
Jio Financial Services is a new company with great potential. It is well positioned to take advantage of the growing demand for financial services in India. The company has a strong management team and a good track record. I strongly believe that Jio Financial Services has the potential to become a successful company.
Will Jio Financial Services be listed on the stock exchange?
Yes, Jio Financial Services is expected to get listed on the stock exchange in the next few months.
What is the expected value of Jio Financial Services?
Jio Financial Services is likely to be valued in the range of Rs 160-190 per share, according to estimates by five analysts.
Axis Securities on Monday recommended Reliance as a “more cost-effective way” to buy ZFS, with a price of 160 rupees ($1.95) per share.
Nuwama Institutional Equities has priced ZFS at Rs 168, Jefferies at Rs 179, JP Morgan at Rs 189 and Motilal Oswal at Rs 190 ($2.32).
Overall, Macquarie estimates that ZFS could be India’s fifth largest financial services company in terms of net worth.
What type of financial services will Jio Financial Services provide?
Jio Financial Services will offer a wide range of financial services including credit cards, loans, insurance and wealth management.
Who is the target market for Jio Financial Services?
Jio Financial Services is targeting the mass market in India. It seeks to provide financial services to those who have traditionally been under-served by the financial sector.
The objective of this session is to determine the price discovery for Reliance Industries shares. The difference between the share price received during this session and the closing price of Reliance Industries on July 19 (a day before the pre-dissolution date) will establish the ‘stable price’ at which Jio Financial will be incorporated.
Reliance Industries will continue to be its constituent smelly index even after partition
In addition, the separate entity, Jio Financial Services, will be added to various Nifty indices including Nifty 50, Nifty 100, Nifty 200 and Nifty 500 from July 20, NSE Indices said in a Monday statement.
As a result of this demerger, a total of 51 stocks will be available for trading on Nifty 50 for at least three days starting July 20, as the demerged entity will become part of the index.
Here are some frequently asked questions on RIL demerger:
What is demerger ratio?
The demerger ratio is 1:1. This means that for every share of Reliance Industries you hold, you will get one share of Jio Financial Services.
How can I get my shares of Jio Financial Services?
If you are a shareholder of Reliance Industries as on the record date of July 20, 2023, you will automatically receive your shares of Jio Financial Services. You do not have to do anything.
What will happen to the share price of Reliance Industries?
It is difficult to say what will happen to the share price of Reliance Industries after the demerger. Some analysts believe that the share price may fall as investors sell their shares of Reliance Industries to get shares of Jio Financial Services. Others believe that the share price may remain stable or even rise as investors are seeing the potential of Jio Financial Services.
What is the future of Jio Financial Services?
Jio Financial Services is a new company with great potential. It is well positioned to take advantage of the growing demand for financial services in India. The company has a strong management team and a good track record. I strongly believe that Jio Financial Services has the potential to become a successful company.
Will Jio Financial Services be listed on the stock exchange?
Yes, Jio Financial Services is expected to get listed on the stock exchange in the next few months.
What is the expected value of Jio Financial Services?
Jio Financial Services is likely to be valued in the range of Rs 160-190 per share, according to estimates by five analysts.
Axis Securities on Monday recommended Reliance as a “more cost-effective way” to buy ZFS, with a price of 160 rupees ($1.95) per share.
Nuwama Institutional Equities has priced ZFS at Rs 168, Jefferies at Rs 179, JP Morgan at Rs 189 and Motilal Oswal at Rs 190 ($2.32).
Overall, Macquarie estimates that ZFS could be India’s fifth largest financial services company in terms of net worth.
What type of financial services will Jio Financial Services provide?
Jio Financial Services will offer a wide range of financial services including credit cards, loans, insurance and wealth management.
Who is the target market for Jio Financial Services?
Jio Financial Services is targeting the mass market in India. It seeks to provide financial services to those who have traditionally been under-served by the financial sector.