Jio Financial Services (JFS), the consolidated financial business arm of Reliance Industries, whose shares were credited to qualified shareholders last week, will make its stock market debut on Monday. Spotted share price for JFS based on the record date of the company event was Rs 261.85, much higher than the Street estimate of a share price of Rs 160-170. It will be seen how the stock reacts upon listing today.
RIL recently said in its annual report that the spin-off of the financial services arm would unlock value for RIL’s shareholders and “give them the opportunity to be part of a new growth platform”.
With this listing, JFS shares will be removed from Nifty and Sensex after the close of the third listing day, i.e. August 24th. However, the exclusion date will be deferred under certain circumstances. . According to Abhilash Pagaria of Nuvama Institutional Equities, there can be passive cash outflows over the counter.
“Assuming a hypothetical price scenario for JFS on Trading (T) + third day of listing – at Rs 261.8 Shares – Nifty index passive trackers could sell around 9 million shares .
This is calculated at the current free float and assumes JFS weights less than 1% in Nifty and around 1% in Sensex.
“If in the first two days of these three days, the detached object touches the price range of both days, the exclusion date will be pushed back by three days. After observing two consecutive days of separated subjects Pagaria Nuvama noted.
To recall, July 20 was a record day for Reliance Industries’ (RIL) consolidated financial services business. The spot price was 261.85 based on the difference between RIL’s closing price of Rs 2,841.85 on July 19 and RIL’s consolidated export price of Rs 2,580 in the pre-opening session. Shares of JFS were credited to eligible Reliance Industries shareholders on a 1:1 basis last week.
Meanwhile, Jio Financial will be delisted from the FTSE Index, marked with a value of 0, on August 21. For simplicity, FTSE passive trackers will assign a value of 0 to the stock. JFS tokens, gradually removing them after Jio initiates transactions. The MSCI Index will maintain JFS stock.
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