The National Stock Exchange and the BSE will conduct a special pre-market session on July 20 for Reliance Industries Ltd on account of demerger of its financial services business into Reliance Strategic Investments Limited.
The spun-off entity, to be renamed as Jio Financial Services Limited, would be included in benchmark Nifty50 and BSE Sensex from July 20, the exchanges said in a separate statement.
All Reliance Industries shareholders will get one share of Jio Financial Services Ltd for one share held by them as of the record date of July 20.
Besides, Jio Financial will be included in indices such as Nifty 100, Nifty 200, Nifty 500, Nifty50 Equal Weight, Nifty 500 Multicap 50:25:25, Nifty Commodities, Nifty Energy, Nifty India Manufacturing, Nifty Infrastructure, Nifty LargeMidcap 250, Nifty Low Volatility 50, Nifty Mobility, Nifty Oil & Gas, Nifty Total Market, Nifty 100 ESG, Nifty 100 Liquid 15 and Nifty100 Low Volatility 30.
Also read: Reliance Retail: What’s in store?
Among the BSE, it will feature 18 indices including BSE100, BSE Sensex50, BSE100 LargeCap 100 TMC, BSE 200, BSE 500, BSE India Manufacturing Index, BSE 250 LargeMidCap Index, BSE LargeCap, BSE LargeMidCap, BSE AllCap and BSE Greenex.
UPL to exit?
According to analysts, UPL with low weightage of 0.37 per cent on Nifty may face exclusion. Other low weightage stocks on the NSE are BPCL (0.42 per cent) and Hero MotoCorp (0.46 per cent). On the BSE, Wipro has the lowest weightage of about 0.80 per cent, said analysts.
All current contracts on Reliance Industries will expire on July 19. F&O contracts for RIL shall be introduced again on July 20 (with expiry July 27, August 31 and September 28), NSE said earlier in a circular.
Jio Fin to list around ₹160: Axis Securities
Axis Securities expects JIo Financial to list around ₹160. “Post demerger, we value Jio Financial Services at the treasury stock valuation of ₹1,08,597 crore (1x RIL’s treasury stock valuation),” it said.
The company’s total outstanding shares stand at 676.60 crore, implying each share’s valuation would be ₹160/share. The shareholding pattern will be the same as that of Reliance Industries Ltd, it added. “We value JFSL at treasury stock valuation as the business model of the company is yet to be announced. Even if the entire allocation is not directed towards JFSL, the company might be able to leverage the same for regulatory funds,” it further said.
Axis Securities recommends investors to buy Reliance Industries before the record date as the brokerage expects it to be a more economical way to buy Jio Financial Services shares. Meanwhile, Reliance Industries will declare its first quarter results for FY24 on July 21.