Jio Financial Services Limited, the demerged financial services unit of billionaire Mukesh Ambani-led conglomerate Reliance Industries Ltd, took the market by surprise after its share price touched Rs 261.85 per share on the National Stock Exchange—much higher than analysts’ estimate—at the end of a special pre-open call auction session on the stock exchanges on Thursday.
Market analysts had initially estimated the share price of the new entity to be valued between Rs 160 and Rs 190 per share.
Meanwhile, the share price of the parent company Reliance Industries fell to Rs 2,580 in the special session that took place for price discovery, on July 20, from 9–9:45 am, taking in the impact of the demerger. However, it later rallied up to 2% after the normal trading resumed post 10 am.
The exercise was conducted to value Jio Financial Services Ltd.
Jio Financial Services Ltd falls under Ambani’s new plan to tap the growing demand for financial services in the country, including lending, insurance, digital broking, and asset management. The financial arm was formed after the demerger of Reliance Strategic Investments Ltd, which was renamed Jio Financial Services Limited.
Jio Financial Services Limited is expected to list on the bourses by October 2023.
According to the scheme of arrangement, shareholders of Reliance Industries Ltd will get one share of the demerged entity for every share held by them in the conglomerate.
Edited by Swetha Kannan
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