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Reliance Industries Limited (RIL) informed its shareholders about the demerger of Reliance Strategic Investments Limited (RSIL) today, July 20.
As per the company's filing, the post-demerger cost of acquisition of RIL shares is 95.32 percent, while that of RSIL shares is 4.68 percent. RIL shareholders will receive one share of RSIL for every share they hold in the conglomerate.
In a special pre-open session conducted by the National Stock Exchange (NSE) between 9-10 am, the implied value of the ex-demerged entity, based on RIL's last closing price of Rs 2,853, was calculated to be Rs 2,707, and for RSIL, it was Rs 133.
Subsequently, RIL's shares opened at Rs 2,589 per share on the Bombay Stock Exchange (BSE) during the special session.
JFSL, the renamed RSIL, will be maintained in all NSE and BSE indices at a constant price, which is the difference between RIL's close price on Wednesday (Rs 2,841.85 on NSE) and its open price during the SPOS on Thursday (Rs 2,580 on NSE), amounting to Rs 261.8 per share, as stated by Nuvama Institutional Equities in a research note. JFSL will be included as the 51st constituent in Nifty50 and the 31st constituent in Sensex.
However, the date for the listing of Jio Financial Services (JFS) is yet to be announced by Reliance Industries Limited (RIL).
Reasons for demerger
The demerger decision was made by the Ambani family to facilitate the growth and expansion of the financial services business, recognizing its unique industry-specific risks, market dynamics, and growth trajectory.
The distinct nature and competition involved in the financial services sector compared to RIL's other businesses like oil to chemicals, retail, and telecom made the demerger a strategic move.
Additionally, the demerger will enable JFSL to leverage higher for its growth, providing shareholders with a value-unlocking opportunity.
— Harshita Kumar
Also, Read Reliance Industries' Demerger of Jio Financial Services Set to Take Place on July 20, 2023
