Bulls on the Indian stock market showed a strong buying interest in Reliance Industries Ltd. (RIL) shares during Monday morning trading as a result of the company's announcement that Jio Financial Services would be demerged, unlocking value. Reliance's stock price today broke through the previous lifetime high of Rs. 2755 per share to hit an intraday high of Rs. 2756 on the NSE. Reliance shares reached a new high and surpassed the Rs. 18 lakh crore market cap at the same time. Reliance Industries Ltd.'s market value was approximately Rs. 18.62 lakh crore at 10:43 AM.
Record Date Set for Determining Eligible Shareholders
Following the terms of the Scheme, Thursday, July 20, 2023, has been fixed as the Record Date for establishing the equity shareholders of the Company obligated to be given the Resulting Company New Equity Shares. Reliance announced Jio Financial Services' de-amalgamation record date on Saturday, citing, "This is in further to our letter dated July 6, 2023, informing that the Hon'ble National Company Law Tribunal, Mumbai Bench has sanctioned the Scheme."
The start date of the plan, according to Reliance Industries, is July 1, 2023. In accordance with the plan, Reliance Strategic Investments Limited (RSIL) will issue and allot one fully paid-up equity share of RSIL with a face value of 10 (Rupees 10) per share to the company's shareholders whose names are listed in the register of members and/or records of the depository as of the record date (referred to as "Resulting Company New Equity Shares").
Although there hasn't been an official announcement regarding Jio Financial Services' share price, global brokerage Jefferies has predicted that it will be around Rs. 179, while JP Morgan has predicted that it will be around Rs. 189 per share, as per updates on private equity.
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented on the anticipated Jio Financial Services listing date after the announcement of the Jio Financial Services demerger record date: "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."