Jio Financial Services To Demerge From Reliance Today, JSFL Price Fixed At Rs 261.85 A Share

At 12pm, Reliance stocks were trading at Rs 2,612.60 apiece on the BSE on Thursday

On July 8, Reliance announced that the NCLT had approved the planned demerger and July 20 would be the record date for allotment of equity shares.

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Reliance Strategic Investments Ltd (RSIL) is all set to be demerged from Reliance on Thursday. It will be renamed Jio Financial Services (JFS) and be listed on the bourses later in the day. On NSE, JSFL to list at Rs 273 per share. JFS is valued at Rs 261.85 per share after the special pre-opening session. 

The stock of Reliance has settled at Rs 2,589 a share on the BSE from its previous close of Rs 2,853 a share. At 12pm, Reliance stocks were trading at Rs 2,612.60 apiece on the BSE on Thursday.  

On July 8, the conglomerate announced that the National Company Law Tribunal (NCLT) had approved the planned demerger and July 20 would be the record date for allotment of equity shares. The share ratio for the demerger process is 1:1, which means that RIL shareholders as of the record date will be eligible to receive one share of JFSL for every one share of RIL held.

According to Moneycontrol, Kirtan A Shah, a trader, wrote in his LinkedIn profile, "Since RIL has settled at Rs 2,589 so will the Nifty or Sensex fall? Technically no. To avoid any impact on the index, RSIL will be listed as the 51st share on Nifty and be given weight accordingly that Reliance plus JFS will still be the same weight and same price that Reliance was as of yesterday's closing.”

He said that till 10 am Nifty’s actual price quoted will consider Reliance at yesterday's closing price and the remaining 49 stocks and live prices.

After 10 am, when the pre-open will end, only the Reliance industry stock will trade and JFS will stay constant. The movement in RIL after 10 am will only impact the NIFTY like normal days as JFS will be constant.

JFS will be removed from the index three days after it lists as separate entity and Reliance’s weight will be adjusted back. This will be done in all the indices that Reliance is a part of, Shah added. Allotment and listing date are yet to be announced.

According to the scheme of arrangement, shareholders of RIL will get 1 share of the demerged entity Reliance Strategic Investments for every 1 share held by them in the conglomerate. But investors should note that this new stock is not tradeable yet. It will remain in Nifty 50 at a constant price till the listing date is announced. It will be removed from Nifty 50, three days after the stock lists.