Jio Financial Services Demerger: Record Date = 20 July; Expected Share Price = 157 to 190

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Jio Financial Services Demerger: Record Date = 20 July; Expected Share Price = 157 to 190
हमारे Reliance के Shares और Future & Option Positions का क्या होगा?

Reliance Industries (RIL) announced July 20 as the record date for the demerger of its financial services arm Reliance Strategic Investments, which would be renamed later on as Jio Financial Services (JFSL).

As part of the plan, RIL shareholders will get one share of Jio Financial for every share they own of RIL

The board has also approved the appointment of McLaren Strategic Ventures' Hitesh Sethia as the CEO and MD of RSIL for 3 years. Mukesh Ambani's daughter Isha has also been appointed as a non-executive director of the financial services company subject to approval from the Reserve Bank of India (RBI).

Former union home secretary Rajiv Mehrishi and PNB's former MD and CEO Sunil Mehta would also join the company as independent directors.

Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Jefferies at Rs 179, while Centrum Broking has a range of Rs 157-190.

JFSL is expected to become India's fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance.

The company is estimated to have an underlying net worth of about Rs 1,50,000 crore, of which there are about Rs 1,10,000 crore worth of shares of Reliance Industries.

Foreign broking firm Macquarie had noted earlier that Jio Financial will have a significant advantage over other NBFCs due to its deep-pocketed parentage, AAA credit rating, strong and well-capitalised balance sheet, very large distribution footprint and strong ability to attract top-notch talent.

All existing contracts for July, August and September 2023 will expire on July 19.

The derivatives contracts on RIL will be reintroduced from July 20, which will be the record-date for underlying shares