Mukesh Ambani's Reliance is going to make you rich, today is an important day

Jio Financial Services is going to separate from Reliance Industries on Thursday i.e. today. RIL had announced in a BSE filing on July 8 that the National Company Law Tribunal has approved the demerger of Jio Financial Services.

Mukesh Ambani, Asia's richest businessman and owner of the country's largest company Reliance Industries, is going to make more than 36 lakh investors of the country rich. The biggest highlight of today is that Reliance Industries is going to demerger with its financial arm Jio Financial Services Limited. Whose record date has been fixed today. Those who have shares of Reliance will be given one share of JFSL for one share. After that dividend can also be declared.

On the other hand, due to this demerger, a big boom can be seen in the shares of Reliance, due to which the value of investors' shares will increase. It is clear that Reliance will give investors an opportunity to earn on many fronts today. So let's discuss about this demerger about all those things which are going on at present. Along with this, we try to find answers to all the questions that have arisen for Jio Financial Services.

Demerger was announced last year

Jio Financial Services is going to separate from Reliance Industries on Thursday i.e. today. RIL had announced in a BSE filing on July 8 that the National Company Law Tribunal has approved the demerger of Jio Financial Services. It had also announced a record date of July 20, 2023 for this. While reporting its September quarter earnings last year, RIL had announced the separation of its financial services business and listing it separately on the stock exchanges under Jio Financial Services Limited. The Mumbai bench of the National Company Law Tribunal (NCLT) had approved the demerger in its order on 28 June.

JFSL will have 6.1 per cent stake in Reliance

In May, shareholders and creditors approved the spinoff of Reliance Strategic Investments Ltd., which will be renamed Jio Financial Services. The ratio for demerger has been fixed at 1:1. This means that for every share of RIL held before the July 20 interest record date, the company will give one share of JFSL. JFSL is expected to be listed in the next two-three months.

Experts said that Jio Financial Services will hold 413 million treasury shares of RIL, which is about 6.1 per cent of the total outstanding shares of RIL. This means that JFSL will hold 6.1 per cent stake in RIL. When Jio Financial will be separated from Reliance Industries, then there will be a need to adjust the share price of Reliance Industries. The adjustment will depend on the value given to Jio Financial Services.

Why is today an important day?

BSE and NSE will conduct a special pre-open session today i.e. on July 20 to know the price of RIL after the demerger. The closing price of RIL in the previous session will be the reference price for this session. The closing price of Reliance's stock on Wednesday is 2,840 and today after the special pre-open session it stabilizes at 2,640, then the share price of Jio Financial Services will be Rs 200 (2,840-2,640).

Post demerger, Jio Financial will be provisionally added to Nifty 50 along with 18 other indices of NSE, including Nifty 100, Nifty 200, Nifty 500, Nifty Energy and Nifty Oil & Gas, without changing any stock. Jio Financial will be added to 18 of the S&P BSE Indices including S&P BSE Sensex for a period of three days from today or July 20. After three days, it will be delisted from all the indices at the last traded price.

JFSL Assessment Expectations

Rajesh Sinha, senior research analyst at Bonanza Portfolio, said in a media report that JFSL holds a 6.1 per cent stake in RIL, which is valued at Rs 1.1 lakh crore. Sinha said this would represent a substantial portion (about 90 per cent) of JFSL's total assets. Excluding the investment in RIL shares, the net worth of JFS would be around Rs 10,000 crore. As per street estimates, JFSL is likely to list at Rs 150-190.

Long term impact on RIL

Brokerage firms believe the demerger has the potential to unlock significant value for RIL and its shareholders. This can lead to an increase of 3-5 per cent in the share price. Brokerage firm Nuwama Wealth Management said in a media report that the demerger of RIL's financial services arm is unlocking value, as happened in 2005 when RIL demerged four entities. The brokerage firm has a buy rating on RIL stock with a target price of Rs 3,205.

Brokerage firm Axis Securities has also said in the media report that those who have bought Reliance shares before the record date can be of great benefit. He believes that Jio Financial Services is likely to be listed at Rs 160.