Jobaaj Stories
Shares of Mukesh Ambani-led Reliance Industries performed exceptionally well on the bourses today as it was the top performer today. But why?
Such a surge in the shares can be credited to the news that the company is planning to hold a meeting to demerge its financial services business.
Also Read: Alibaba group saw a jump in their shares after the announcement of split-up.
The demerger was proposed by Chairman Mukesh Ambani last year. The same got approved by the Board of Reliance Industries in October 2022. According to the plan, Reliance Strategic Investments will be renamed Jio Financial Services and would subsequently be listed on Indian bourses.
Moreover, all shareholders of Reliance Industries would receive one share in the new company for every share held in Reliance Industries!
According to RIL, the demerger would allow the business to bring in investors, lenders and partners while taking certain industry-specific risks, allowing greater growth.
A meeting of lenders and shareholders is planned for May 2nd, 2023, to debate and approve a plan for the proposed demerger. The demerger will be accomplished through a share exchange transaction.
Moreover, overall market sentiment was bullish today as the Nifty 50 index surged 1.63% while SENSEX was up 1.78%. Positive market sentiment also helped drive the stock of the Oil-to-Telecom group higher.
Shares of Reliance Industries had been on a losing streak since early March, but today the share made a massive green candle. The stock saw a full gap-up opening as it reclaimed the Rs 2,300 mark and closed at Rs 2,331.05 per share, up 4.3%.
- Aman Agarwal
