Jio Financial demerger: Discovered price much higher than street estimates

RSIL stock is listed at Rs 261.8 per share and Nuvama Research expects Nifty 50 Index passive trackers to potentially sell around 90 million shares, which amounts to approximately $290 million.

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At end of a special trading session on stock exchanges, the shares of Reliance Strategic Investments Ltd (RSIL) were discovered at Rs 261.85, much higher than analyst estimates of Rs 160-190.

With this, RSIL will be valued at around Rs 1.45 trillion. RSIL is set to be demerged from RIL on 20th July. It will be renamed Jio Financial Services (JFS) and be listed on exchanges at a later date.

The RIL stock has settled at Rs 2589 a share on BSE from its previous close of Rs 2853 a share.

The company will announce its earnings on 21 Jul for the June quarter. With RIL’s financial business moving to JFSL, it will own a 6.1% stake in Reliance Industries.

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.

The company primarily operates in the NBFC market and credit market segment. It has strategic plans to expand its operations into insurance, digital payment, and asset management verticals.

Isha Ambani has been appointed as a non-executive director on the board of JFSL, while Hitesh Sethia, a former ICICI executive, will take on the role of the new CEO and MD. These appointments are expected to strengthen the company's leadership team and drive its growth initiatives across various sectors.

Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.