The shares of Reliance Strategic Investment, the entity demerged from Reliance Industries, were valued at ₹262 at the end of a special trading session on the stock exchanges on Thursday.
The stock was valued much higher than analyst estimates of ₹160-190 a share.
RSIL, which demerged from Reliance Industries, will be renamed Jio Financial Services before being listed on the exchanges on a date to be announced by the company. Shareholders will get one JFSL share for each Reliance share they hold.
Also read: Reliance-Jio Financial demerger: what you need to know
Demerger cost
RIL has informed shareholders that the post-demerger cost of acquisition of shares will be 95.32% for RIL and 4.68% for RSIL.
Sonal Gandhi, Research Analyst, Centrum Broking, said, as per the income tax provisions, the cost of acquisition will be the net worth of RSIL divided by the net worth of the demerged RIL. Since the standalone net worth of RIL was ₹5-lakh crore as of March-end and the 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 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.