Today all eyes will be on Reliance’s share, Jio Financial is going to be a part of Nifty, know what will be the effect on investors
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Why is this demerger important for RIL shareholders?
Under the scheme of this demerger, the shareholders of Reliance Industries will get one share of Jio Financial Services for every share of RIL. That is, there will be an allotment of shares in the ratio of 1:1.
In the demerger of RIL, on July 20, the investor who will have shares of Reliance Industries, will be allotted shares of Jio Financial Services under the prescribed procedure. The shareholding pattern in Jio will be similar to that of Reliance Industries.
Why special session for RIL on NSE on 20th July?
The objective of this special pre-open session is price discovery of Reliance Industries shares. That is, after separating its financial services business, what will be the price of its shares, it will be decided through this pre-open session. This pre-open session will run from 9 am to 9:45 am on July 20.
With this, the constant price of Jio Financial Services will also be fixed. The difference between the closing price of RIL on July 19 and its price in the special pre-open session on July 20 will be the constant price of Jio Financial Services. It will be included in the index at this price as NSE had created a new methodology for the index in April, which stated that the demerged company would be included in the index at a ‘constant price’.
What will be the value of Jio Financial’s shares?
Many analysts are speculating about this. He says that the value of Jio Financial’s share can be between Rs 160 to Rs 200. With RIL’s financial business going to JFSL, JFSL will hold 6.1% stake in Reliance Industries.
Axis Securities says that the treasury stock valuation of Jio Financial after the demerger is estimated to be Rs 1 lakh 8 thousand 597 crore. The company has total 6 billion 77 crore outstanding shares. Therefore, the value of Jio’s share should be Rs 160.
Brokerage Nuwama has estimated the value of Jio Financial’s stock at Rs 168. Centrum Broking says that Jio can be listed at a price of Rs 157 to 190 per share. JP Morgan says that the rate can be Rs 189. Jefferies has estimated Rs 179 per share.
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