Jio Financial demerger: Reliance starts special trading session

By India Today Business Desk: Shares of Reliance Industries Limited (RIL) commenced trading on Thursday in a special session designed to determine the share value of its demerged financial services unit, Jio Financial Services. The session comes as part of the planned demerger of the financial arm from Reliance Industries.

On Wednesday, Reliance’s stock had closed at Rs 2,841.85, and now, India’s two main stock exchanges, NSE and BSE, are conducting a “pre-open call auction” session for Reliance between 9:00 am to 10:00 am.

During this special session, a share price for Reliance Strategic Investments, which will be eventually renamed Jio Financial Services, will be calculated based on the difference between Reliance’s last closing price and the stock’s settling price at the end of the session.

It may be noted that analysts have estimated Jio Financial Services to be valued between Rs 160-190 per share. Reliance shares will also trade at a new price after today’s special session.

The shares of Jio Financial Services will be included in major indices, including the benchmark NSE Nifty 50. However, it will not trade until it gets listed. The date for its listing is expected to be announced at Reliance’s upcoming annual general meeting.

Jio Financial Services demerger

The demerger, which was initially announced by Reliance last October, aims to create a separate and focused entity for its financial services unit, Jio Financial Services.

By separating the financial arm, Reliance Industries intends to unlock potential value and provide investors with clearer insights into the company’s diverse operations.

The move is expected to streamline operations and enhance transparency, allowing investors to better assess the individual performance and growth prospects of Jio Financial Services, which has been gaining prominence in India’s fast-growing financial services sector.

Reliance Industries, led by chairman Mukesh Ambani, is renowned for its presence across various industries, including telecommunications, energy, retail, and now financial services. The conglomerate’s diversification strategy has played a key role in its growth and success over the years.

As the pre-open call auction session unfolds, market analysts and investors are closely monitoring the stock’s movements, anticipating how the demerger will impact the share value of Jio Financial Services, and thus, the overall valuation of Reliance Industries.

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