NSE, BSE to conduct special pre-open trade for RIL on July 20 due to demerger

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The National Stock Exchange and the Bahrain Stock Exchange will hold a special session before the shares are offered on July 20 in order to Reliance Industries Limited On account of separating its financial services business into Reliance Strategic Investments Limited.

The separate entity, which will be renamed Jio Financial Services Limited, will be included in the standard Nifty 50 and BSE Sensex from July 20, the exchanges said in a separate statement.

All Reliance Industries shareholders will receive 1 share of Jio Financial Services Ltd for 1 share they own as of the record date of July 20.

Besides, Jio Financial will be included in indices like Nifty 100, Nifty 200, Nifty 500, Nifty50 Equal Weight, Nifty 500 Multicap 50:25:25, Nifty Commodities, Nifty Energy, Nifty India Manufacturing, Nifty Infrastructure and Nifty LargeMidcap 250, Nifty Low Volatility 50, Nifty Mobility, Nifty Oil & Gas, Nifty Total Market, Nifty 100 ESG, Nifty 100 Liquid 15 and Nifty100 Low Volatility 30.

Also read: Reliance Retail: What’s in store?

Among the BSE, it will include 18 indices including BSE100, BSE Sensex50, BSE100 LargeCap 100 TMC, BSE 200, BSE 500, BSE India Manufacturing Index, BSE 250 LargeMidCap Index, BSE LargeCap, BSE LargeMidCap, BSE AllCap and BSE Greenex.

UPL to exit?

According to analysts, UPL With a weight of 0.37 percent lower on Nifty it could face exclusion. Other low weighting stocks in the NSE are BPCL (0.42 percent) and Hero MotoCorp (0.46 percent). Analysts said that “Wipro” has the lowest weight of about 0.80 percent on the Bahrain Stock Exchange.

All existing Reliance Industries contracts will expire on July 19th. RIL’s F&O contracts will be offered again on July 20 (with expiration dates on July 27, August 31 and September 28), the NSE earlier said in a prospectus.

Jio Fin to list about EGP 160: Axis Securities

Axis Securities expects JIo Financial to list around Rs 160. “After separation, we value Jio Financial Services at treasury stock valuation of Rs 1,08,597 crore (1x treasury stock valuation at RIL),” he said.

The total outstanding shares of the company is Rs 676.60 crore, which means the valuation of each share will be $160 per share. She added that the shareholding pattern would be the same as that of Reliance Industries Ltd. “We value JFSL in valuing treasury stocks as the company’s business model is yet to be announced. Even if the allocation is not directed entirely toward the JFSL, the company may be able to benefit from the regulatory funds themselves.

Axis Securities recommends that investors buy Reliance Industries before the record date as the brokerage expects it to be a more economical way to buy Jio Financial Services shares. Meanwhile, Reliance Industries will report its results for the first quarter of fiscal ’24 on July 21.