Jio Financial Services Enters NSE Nifty 50 After Reliance Demerger

18 Jul 2023 , 12:24 PM

Jio Financial Services, the financial arm of Reliance Industries (RIL), will be listed on the NSE Nifty 50 from July 20 after its demerger from Reliance Strategic Investments.

The demerged entity, renamed Jio Financial Services, will also feature in the Nifty 100, Nifty 200, Nifty 500, and other sectoral indices, as stated by the National Stock Exchange.

NSE will conduct a special pre-open session for Reliance Industries Limited (RIL) on July 20 to facilitate the transition. Under the scheme of the arrangement, Reliance Strategic Investments will issue one fully paid-up equity share with a face value of Rs 10 for each existing share of Reliance as of the record date.

The demerger will result in value unlocking for Reliance Industries, with all financial businesses moving under Jio Financial Services Ltd, which currently holds a 6.1 % stake in RIL. Following the demerger, Jio Financial Services’ estimated valuation is around ₹10,000 crore.

RIL shareholders will receive Jio Financial Services shares in a 1:1 ratio after the record date for the demerger, according to the company’s announcement.

This strategic move reflects Reliance Industries’ efforts to explore new growth opportunities and streamline its diversified business portfolio.

The listing of Jio Financial Services in significant NSE indices is expected to attract investor interest and increase market liquidity for the newly formed entity.

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