Jio Financial Demerger: What Investors Need to Know
Reliance Strategic Investments Ltd (RSIL) is set to be demerged from RIL on 20th July, transforming into Jio Financial Services (JFS) and scheduled for a future listing on stock exchanges. The recent special trading session saw RSIL's shares debut at Rs 261.85, surpassing analyst projections of Rs 160-190, leaving investors eager for more details.
Under the scheme of the arrangement, RIL shareholders will receive 1 share of the newly formed Reliance Strategic Investments for each share they currently hold in the conglomerate. However, it's essential to remember that the new stock is not yet tradeable. Until the listing date is confirmed, it will hold a constant price within Nifty 50.
To mitigate any impact on the index, RSIL will be listed as the 51st share on Nifty, ensuring Reliance's weight and price remain unchanged. Only after three days of listing will JFS be removed from Nifty 50, and Reliance's weight will be adjusted accordingly across all indices it is part of.
According to the scheme of the 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. I seem to be getting some questions on why Reliance is down today that’s not the case – the effective price of Reliance as we speak is Live Price – 2617+261.85 = 2878.85
I will keep this space updated on any new news on the Jio Financial demerger