The shares of Reliance Strategic Investment, the demerged entity from Reliance Industries, were valued at ₹262 at the end of a special trading session on stock exchanges on Thursday.
The stock was valued much higher than analyst estimates of ₹160-190 a share.
RSIL is set to be demerged from Reliance Industries on July 20 and renamed as Jio Financial Services before being listed on exchanges on a date to be announced by the company. Shareholders will get one JFSL share for each Reliance share they hold.
RIL had said apportion of de-merger cost of acquisition of equity shares will be in the ratio of 4.68 for RSIL and 95.32 for RIL.
Sonal Gandhi, Research Analyst, Centrum Broking, said as per income tax provisions, the cost of acquisition will be net worth of RSIL divided by the net worth of the demerged RIL.
Since the standalone net worth of RIL was ₹ five lakh crore as of March-end and apportionment ratio was 4.68 per cent, the net worth of RSIL should be ₹23,500 crore, said Gandhi.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said despite the higher discovered price of RSIL, the market has discounted the faster growth that can be achieved in the years to come from the wider reach through the group’s other business segments such as Reliance Retail and telecom business.
Reliance Industries was up one per cent at ₹2,620 while Sensex was up 474 points at 67,571 on Thursday.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.