MUMBAI: The demand for shares of Jio Financial Services (JFS) has fueled a rally in Reliance Industries Limited (RIL) shares. As Wednesday was the last day to get shares of JFS by buying shares of RIL, several investors decided to put their money in India’s largest company by market capitalisation before the end of trading yesterday. JFS, the financial services arm of RIL, will be spun out of the conglomerate on Thursday. Several brokerages have valued JFS at around Rs 150-200 per share.
RIL shares have surged nearly 16% since May 4, when shareholders approved the demerger of the company’s financial services firm - Reliance Strategic Ventures, which is now renamed JFS. The shares have risen over 4% since July 8, when Reliance announced July 20 as the record date for the demerger of JFS. Investors’ optimism helped RIL shares to touch a 52-week high of Rs 2,855 and closed 0.6 per cent higher at Rs 2,840 apiece on the Bombay Stock Exchange on Wednesday.
“It (rally in RIL shares) could be one of the triggers but it could be because of other businesses. RIL results will be announced on Friday and the expectation is that most of the businesses (of RIL) should report good numbers,” Gaurang Shah, Senior Vice President at Geojit Financial Services told TNIE. “JFS shares are likely to open anywhere between Rs 160-185 per share and then will depend upon the demand and supply. The opportunities for JFS are going to be huge. RIL has got a well-established and strong network to reach out to people and that advantage will definitely be taken by JFS,” he added.
RIL is demerging its financial service businesses and the spun-off entity is renamed JFS. Under the demerger scheme, RIL shareholders will get 1 share of the demerged entity Reliance Strategic Investments for every 1 share held by them in the conglomerate. National Stock Exchange and BSE will conduct a special pre-open session for Reliance for price discovery on Thursday.
RIL share rises 16% after approval for JFS demerger
RIL shares surged have nearly 16 per cent since May 4, when shareholders approved the demerger of the company’s financial services firm - Reliance Strategic Ventures which is now renamed JFS