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Wednesday, October 4, 2023

Why NSE is holding a special pre-opening session for Reliance Industries Ltd

NEW DELHI: The National Stock Exchange (NSE) has scheduled a special pre-open session on July 20 to Dependence Industries Ltd due to the spin-off of its financial services business, Reliance Strategic Investments Ltd. As part of this spin-off, the spun-off entity, Reliance Strategic Investments Ltd (RSIL), will change its name to jio Financial Services (JFSL).
The objective of this session is to determine the price discovery for the shares of Reliance Industries. The difference between the share price obtained during this session and Reliance Industries’ closing price on July 19 (the day before the spin-off date) will set the “constant price” at which Jio Financial will be listed.
Reliance Industries will remain a component of Nifty Indices even after the spin-off.
In addition, the spun-off entity, Jio Financial Services, will be added to several Nifty indices, including the Nifty 50, Nifty 100, Nifty 200 and Nifty 500, starting July 20, NSE Indices said in a statement on Monday.
As a result of this spin-off, a total of 51 shares will be available to trade on the Nifty 50 for at least three days from July 20, when the spun-off entity becomes part of the index.
Here are some frequently asked questions about the RIL spin-off:
What is the excision ratio?
The cleavage ratio is 1:1. This means that for every Reliance Industries share you own, you will receive one Jio Financial Services share.
How do I get my Jio Financial Services shares?
If you are a shareholder of Reliance Industries as of the record date of July 20, 2023, you will automatically receive your Jio Financial Services shares. You don’t need to do anything.
What will happen to the Reliance Industries stock price?
It’s hard to say what will happen to Reliance Industries’ stock price after the spin-off. Some analysts believe that the share price could decline as investors sell their shares of Reliance Industries to obtain shares of Jio Financial Services. Others believe that the share price could remain stable or even rise as investors see the potential of Jio Financial Services.
What is the future of Jio financial services?
Jio Financial Services is a new company with a lot of potential. It is well positioned to capitalize on the growing demand for financial services in India. The company has a strong management team and a good track record. I believe that Jio Financial Services has the potential to be a successful company.
Will Jio Financial Services go public?
Yes, Jio Financial Services is expected to be listed on the stock exchange in the coming months.
What is the expected value of Jio Financial Services?
According to the estimates of five analysts, Jio Financial Services is likely to be valued between Rs 160-190 per share.
Axis Securities on Monday recommended buying Reliance as “a cheaper way” to buy JFS, which it pegs at 160 rupees ($1.95) per share.
Nuvama Institutional Equities values ​​JFS at Rs 168 per share, Jefferies at Rs 179, JPMorgan at Rs 189 and Motilal Oswal at Rs 190 ($2.32).
Overall, JFS could be India’s fifth largest financial services company in terms of net worth, Macquarie estimates.
What kind of financial services will Jio Financial Services offer?
Jio Financial Services will offer a wide range of financial services, including credit cards, loans, insurance, and wealth management.
Who is the target market for Jio Financial Services?
Jio Financial Services targets the mass market in India. It seeks to provide financial services to people who have traditionally been neglected by the financial sector.

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