The National Stock Exchange (NSE) will conduct a special pre-market session on July 20 for Reliance Industries Ltd on account of demerger of its financial services business into Reliance Strategic Investments Limited. The Bombay Stock Exchange (BSE) also announced that Jio Financial will be added to 18 of the S&P BSE indices, including the S&P BSE Sensex, starting July 20 for a period of three days – on account of Reliance Industries being a part of the special pre-open session. After three days, it will be dropped from all the S&P BSE indices at the last traded price.
“NSE has announced special pre-open session to be conducted for Reliance Industries Limited in Capital Market segment on July 20, 2023 on account of demerger of its financial services business into Reliance Strategic Investments Limited (‘spun-off entity’ to be renamed as Jio Financial Services Limited),” the bourse said in a circular on July 17.
Apart from Nifty 50, Jio Financial will be temporarily added to 18 other indices of NSE, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy, and Nifty Oil & Gas. This inclusion is due to the change in the index methodology regulations laid out by the exchange when considering mergers and demergers in index constituents. The NSE updated the full list of indices where Jio Financial Services will be included from July 20.
A pre-open call auction session for Reliance will also be conducted for price discovery on July 20 from 9–10 a.m, according to another circular. “All the unmatched orders of the pre-open call auction session within the dynamic price band of the discovered price shall be moved to the normal trading session at their limit price.”
However, if equilibrium price is not discovered, all orders will be will be cancelled, and the stock will continue to trade in the call auction mechanism until equilibrium price is discovered.
Earlier, Reliance Industries (RIL) had announced that it has set July 20 as the official date for determining which shareholders qualify to receive shares from the demerged entity. Under the scheme of arrangement, Reliance Strategic Investments will allot one fully paid-up equity share of the face value of ₹10 each for every share of Reliance as of the record date.
RIL has declared that Reliance shareholders would be awarded Jio Financial Services shares in 1:1 ratio after Jio Financial Services record date for demerger.
After this demerger, there will value unlocking for Reliance Industries while its all financial business will move to Jio Financial Services Ltd, which owns 6.1 per cent stake in RIL. So, after the demerger, Jio Financial Services valuations would be around ₹10,000 crore.
In the first week of July, Reliance Industries said the National Company Law Tribunal has given its nod to the demerger of the company’s financial services undertaking and its listing.
On July 17, shares of Reliance Industries settled 2.10 per cent higher at ₹2,796.40 apiece on the BSE.
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Updated: 17 Jul 2023, 10:29 PM IST