The demerger of Strategic Investments Limited will be completed today. The company will be renamed as Jio Financial Services and will be listed on the exchanges later. The stock was pre-listed at Rs 261.85 at the end of the special trading session on stock exchanges.
This is higher than what observers had earlier pointed out. Experts in this field had assumed that the share price would be in the range of Rs 160 to Rs 190. Once the listing is completed, the firm will become the fifth largest financial institution in India.
The share price of Reliance Industries was Rs 2608.9 by 11.30 am today. At the beginning of the trade, the price was Rs 2,580. Shares of Reliance Industries closed at Rs 2,841.85 on Wednesday. Meanwhile, the allotment of shares and the listing date are yet to be announced. The implication is that shareholders holding Reliance Industries shares may get one share of the demerged entity Reliance Strategic Investments for each share they hold.
But this new stock is not yet tradable. It will remain fixed price on Nifty 50 till the listing date is announced. A stock is delisted from the Nifty 50 after three days of listing.
On 19 June 2005, the board of Reliance Industries approved the demerger of Strategic Investments Limited from the company. Among the group companies of Reliance Industries, Reliance Industries and Reliance Capital are listed earlier. . The remaining companies were listed in February and March 2006 with the formation of three new subsidiaries (Reliance Natural Resources Ventures, Reliance Energy Ventures and Reliance Communications). After this there was a 38 percent increase in the wealth of Reliance shareholders. Also Reliance investors got free shares of additional firms.