20-Jul-2023
2 mins read
In the dynamic landscape of India’s financial sector, Reliance Industries Ltd. has yet again made headlines by listing its shares at Rs 2,617 each. This followed a special pre-opening session intended to ascertain the share price post the much-anticipated separation of Jio Financial Services Ltd. into an independently listed entity.
Pre-Open Session Witnesses Minor Gains
Interestingly, the listing price of Reliance Industries showed a 3.5% discount to the apportionment cost of acquisition for RIL, which had been pegged at Rs 2,708.85 per share. This development arose in the context of Reliance Industries Ltd.’s special pre-open session, which had been orchestrated to determine its share price after the spin-off of Jio Financial Services Ltd.
As the session unfolded, shares of the oil-to-telecom behemoth saw minor gains in the early hours of Wednesday trading ahead of the demerger of Jio Financial Services. On the Bombay Stock Exchange (BSE), Reliance shares had an opening at Rs 2,832 apiece. As trading progressed, RIL shares marked a new 52-week high at Rs 2,856 per share.
Jio Financial Services: Indicative Price Above Apportionment Cost
In another significant turn of events, the indicative price of Jio Financial Services Ltd. was quoted at Rs 261.85 per share. This came off as a positive surprise, considering it exceeded the apportionment cost of Rs 133 per share that Reliance Industries Ltd. had set for acquiring shares of Reliance Strategic Investment Ltd.
A Green Signal from The National Company Law Tribunal
Back in September, RIL declared its plan to demerge its financial services division, intending to list it separately on the stock exchanges under the name of Jio Financial Services Ltd. This proposal has now been approved by the National Company Law Tribunal (NCLT). According to a BSE filing by RIL on July 8, the tribunal approved the planned demerger of Jio Financial Services from the parent RIL. Furthermore, it was announced that every investor in the parent company would receive a share of Jio Financial for each one they held.
The decision by the Mumbai bench of the NCLT, delivered on June 28 and posted on the NCLT website on July 5, marks a pivotal moment for both Reliance Industries and its newly carved-out entity, Jio Financial Services Ltd. The ensuing separation of Jio Financial Services and its independent listing promises exciting times ahead for investors and the financial services sector alike.