Reliance Industries Ltd (RIL) experienced a surge in its share price following the news of the demerger date for Jio Financial Services. The announcement sparked significant buying interest among investors, propelling the share price of Reliance to a new all-time high.
Shares of Reliance opened the trading session with strong upward momentum, reaching an intraday high of ₹2,756 on the National Stock Exchange (NSE), surpassing its previous lifetime high of ₹2,755 per share. This impressive performance also led to a market capitalization of over ₹18 lakh crore, underscoring investors' optimism.
On Saturday, Reliance Industries declared July 20, 2023, as the record date for the demerger of Jio Financial Services. The demerger scheme, sanctioned by the Hon'ble National Company Law Tribunal, Mumbai Bench, will come into effect on July 1, 2023. As part of the scheme, Reliance Strategic Investments Limited (RSIL) will issue and allot one fully paid-up equity share of RSIL, with a face value of ₹10, for every fully paid-up equity share of Reliance Industries Ltd held by shareholders.
Although the official share price for Jio Financial Services is yet to be announced, global brokerages have provided estimates. Jefferies expects the Jio Financial Services share price to be around ₹179, while JP Morgan anticipates it to be approximately ₹189 per share.
Analysts predict that the listing of Jio Financial Services will likely occur within one to one and a half months following the demerger record date. Avinash Gorakshkar, Head of Research at Profitmart Securities, suggests that the listing may take place by the end of August 2023.
The demerger of Jio Financial Services represents a significant value-unlocking move by Reliance Industries, garnering substantial market attention and fostering positive sentiments among investors
