Reliance demerger: Jio Financial Services valued at ₹261.85, surpasses analysts estimates

New Delhi: Jio Financial Services was valued at ₹261.85 per share on the National Stock Exchange at the end of a special pre-open call auction session conducted in the capital market segment for price discovery on Thursday. This follows its demerger with Reliance Industries Ltd. (RIL), the share price of which fell to ₹2,580.

The discovered price of Jio Financial Services is above analyst expectations who had valued it at ₹125-225. Analysts' valuations were based on around 6% treasury stake in Reliance Industries, that Jio Financial Services would own.

Analysts at JP Morgan had said that the implied value for Jio Financial Services currently stood at ₹189 per share and is based only on the treasury shares of RIL. Analysts at Nuvama Equity Research had valued treasury shares at ₹168 apiece (6% of market price) based on RIL’s closing price on 14 July. They, however, said that RIL stock could be least impacted by this demerger and instead see an upside of 3-5%.

Based on the closing price of Reliance Industries shares at the end of pre-opening session at ₹2,580 and previous closing price of ₹2,841.85 on Wednesday, Jio Financial Services will be included in the indices, including Nifty, at ₹261.85. It will stay there, at the constant price of ₹261.85 till the date of listing of Jio Financial Services is finally declared.

Analysts, meanwhile, have been are waiting for more clarity to emerge on valuations and they expect the RIL's AGM to lay out a more granular detailed roadmap for strategy in Jio Financial Services

Reliance Industries’ shareholders are to be issued Jio Financial Services shares in ratio of 1:1 or 1 equity share of Jio Financial Services for every share held in RIL on the record date.

Earlier this month, the Mukesh Ambani-led conglomerate had said that the National Company Law Tribunal had approved the planned demerger.