Jio Financial Services To Get Listed On Stock Exchanges On August 21

Reliance Industries (RIL), India’s largest company in terms of market cap, has made a significant announcement regarding its subsidiary, Jio Financial Services. The company has revealed that Jio Financial Services will be listed on the stock exchange on August 21.

Jio Financial Services Share Demerger Update.

This announcement has led to a strong recovery in RIL’s stock prices, even in a weak market scenario. Despite the challenging market conditions, RIL’s stock is trading at Rs. 2570, experiencing a gain of 1.5% on the Bombay Stock Exchange (BSE).

The listing process entails that for every share held by RIL shareholders, they will receive 1 share of Jio Financial. The demerger of RIL’s financial services arm was set for July 20, and during that time, the price discovery of Jio Financial was Rs. 261.8. Based on this valuation, the market capitalization of Jio Financial is approximately Rs. 1.4 lakh crore.

However, the announcement of the listing date comes at a time when FTSE Russell, the global index provider, has decided to remove Jio Financial’s share from its index effective August 22. This decision follows the fact that Jio Financial Services did not commence trading within the stipulated 20-day timeframe, and the listing date was also uncertain. FTSE Russell adheres to the Spin-offs policy, which dictates that companies not trading or providing updates for 20 days are removed from the index.

For Nifty 50 and Sensex traders, this development could result in a potential sell-off of Jio Financial shares, amounting to an estimated Rs. 3865 crores. This translates to about Rs. 2140 crores for Nifty 50 traders and Rs. 1455 crores for Sensex traders. Despite the FTSE Russell changes, the stock could still be sold for approximately Rs. 1600 crores.

In summary, RIL’s announcement regarding the listing of Jio Financial Services marks a significant development in the company’s financial landscape. However, the impending removal of Jio Financial’s share from the FTSE Russell index introduces potential implications for traders and investors.