Reliance Share Price: RIL Shares Surge, Hit 52-Week High On Jio Financial Services Demerger

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Reliance Industries Ltd (RIL) share price surged during Monday morning deals, as the company announced value unlocking through the demerger of Jio Financial Services. The stock witnessed strong buying interest among Indian stock market bulls, leading to an upward opening. RIL shares hit an intraday high of ₹2756 apiece on NSE, surpassing the previous 52-week high of ₹2755 per share. This surge in price also propelled the market cap of Reliance Industries to over ₹18 lakh crore, reaching a new milestone. At 10:43 AM, the market cap stood at around ₹18.62 lakh crore.

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Jio Financial Services Demerger Record Date

Reliance Industries declared the record date for the demerger of Jio Financial Services, which is set to take place on July 20, 2023. The company stated, “This is in furtherance to our letter dated July 6, 2023, intimating that the Hon’ble National Company Law Tribunal, Mumbai Bench has sanctioned the Scheme,” and added, “In accordance with the terms of the Scheme, Thursday, July 20, 2023, has been fixed as the Record Date for the purpose of determining the equity shareholders of the Company entitled to receive the Resulting Company New Equity Shares.”

Reliance Industries also provided additional information regarding the demerger:

The Effective Date of the Scheme is July 1, 2023.
Under the provisions of the Scheme, Reliance Strategic Investments Limited (RSIL) will issue and allot 1 fully paid-up equity share of RSIL, with a face value of ₹10 each, for every 1 fully paid-up equity share of ₹10 each of the Company (Resulting Company New Equity Shares) to the shareholders whose names are recorded in the register of members and/or records of the depository as on the Record Date.

Jio Financial Services Share Price Estimates

While the official announcement for Jio Financial Services share price is pending, global brokerage Jefferies has estimated it to be around ₹179, while JP Morgan projects a share price of around ₹189 apiece.

Jio Financial Services Listing Date

Avinash Gorakshkar, Head of Research at Profitmart Securities, expects the listing of Jio Financial Services by the end of August 2023, following the announcement of the demerger record date. He stated, “We can expect Jio Financial Services listing by the end of August 2023, as it would take around one to one and a half months after the demerger record date.”

The announcement of the demerger and the subsequent surge in RIL shares reflect the positive sentiment and investor confidence in the value unlocking potential of Jio Financial Services. Investors will closely watch the developments leading up to the demerger record date and the subsequent listing of Jio Financial Services.