RIL-Jio demerger: Special pre-open session for Reliance shares on July 20; here’s what will happen
- RIL-Jio demerger: A pre-open call auction session for Reliance will also be conducted for price discovery on July 20 from 9–10 a.m, according to a circular by the stock exchanges
RIL-Jio demerger: Shares of Reliance Industries (RIL) will not be available for normal trading for the first 45 minutes on Thursday, July 20 as a result of the demerger of its financial services arm. RIL shares will go through a special pre-open call auction tomorrow on the demerger of Jio Financial Services Ltd (JFSL) between 9:00 am to 10:00 am. During this session, one can only place, cancel, or modify the orders.
The price at which the highest orders will be matched becomes the opening price of the stock at 10 am when normal trading resumes for RIL. The difference between today's closing price of RIL and the price derived during the special session will be treated as the "constant price" for Jio Financial Services. On Wednesday, shares of RIL settled 1.15 per cent higher at ₹2,853 apiece on the NSE.
Earlier this week, the National Stock Exchange (NSE) had announced that a special pre-market session will be conducted on July 20 for Reliance Industries Ltd on account of demerger of its financial services business into Reliance Strategic Investments Limited.
The Bombay Stock Exchange (BSE) had also announced that Jio Financial will be added to 18 of the S&P BSE indices, including the S&P BSE Sensex, starting July 20 for a period of three days - on account of Reliance Industries being a part of the special pre-open session.
Also Read: NSE, BSE to conduct special pre-open session for Reliance on July 20 due to demerger of biz arm
Jio Financial Services will begin trading as part of the NSE Nifty 50 on July 20. The demerged entity will also be included in the Nifty 100, Nifty 200, and Nifty 500 indices, as well as other sectoral indices, the National Stock Exchange said on July 17. Earlier this week, the NSE had also updated the full list of indices where JFSL will be included from tomorrow.
Shares of the oil-to-telecom conglomerate witnessed minor gains on Wednesday early trade ahead of demerger of Jio Financial Services. Reliance shares opened at ₹2,832 apiece on BSE. RIL shares touched new 52-week high at ₹2,856 apiece during the trading session today.
The planned demerger of Jio Financial Services had been approved by the National Company Law Tribunal, RIL reported in a BSE filing on July 8th. It announced July 20, 2023 as the record date.
Last September, RIL stated that its financial services division would be demerged and listed separately on the stock exchanges under the name Jio Financial Services Ltd. The demerger was allowed by the Mumbai bench of the National Company Law Tribunal (NCLT) in an order from June 28 that was posted on the NCLT website on July 5.
Reliance Strategic Investments Ltd., which would become Jio Financial Services, had its spinoff approved by shareholders and creditors in May.
Demerger ratio is fixed at 1:1. In other words, the company will be given one share of JFSL for each share of RIL owned prior to the record date of July 20.
Reliance Industries will declare its April-June quarter results for fiscal 2023-24 on Friday, July 21. Ahead of the results, RIL announced today that it will consider paying a dividend to its investors at its board meeting on July 21, along with the announcement of quarterly results.
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