Jio Financial Services Shares credited to RIL shareholders, Listing Soon

Reliance Industries Ltd. (RIL) has completed the demerger of its financial services business, Jio Financial Services Ltd (JFSL), and allotted shares to its eligible shareholders. JFSL is expected to list on the stock exchanges soon, creating value for its 36 lakh-strong shareholder base.

According to a regulatory filing by JFSL, the company has allotted 635.32 crore equity shares with a face value of Rs 10 each to the shareholders of RIL as of the record date of July 20. The share ratio for the demerger process was 1:1, which means that all shareholders of RIL were eligible to receive one share of JFSL for every one share of RIL owned as of the record date. The equity shares allotted have been credited to the demat account of the shareholders on August 10.

However, the shares will remain frozen in the depository system until listing or trading permission is granted by BSE, the designated stock exchange. JFSL has applied to the BSE and the NSE for the listing of the equity shares. The listing date has not been announced yet, but it is speculated that it could happen by September this year.

JFSL has been included in the Nifty50, BSE Sensex, and other indices and will remain at a constant price until the time the stock is listed independently. The stock will be removed from all indices T+3 days post its listing. As part of a special price discovery session held on the record date, the stock’s pre-listing price came out to be Rs 261.85 per share, which was much higher than the brokerage estimate of around Rs 190 and RIL’s cost of acquisition of Rs 133. The NBFC’s market capitalization, therefore, comes to Rs 1.66 lakh crore, or about $20.3 billion. At this valuation, it is now the second-largest NBFC in India.

JFSL is a digital-first entity with interests in lending, insurance, payments, digital broking, and even asset management. It aims to provide simple, affordable, and innovative digital-first solutions to Indian citizens. It has recently announced a 50:50 joint venture entity with BlackRock to enter the mutual fund industry. It will also leverage the technological capabilities of the RIL and Jio Platforms to deliver financial services digitally.

RIL Chairman and MD Mukesh Ambani said in the company’s annual report that JFSL will access the opportunities available in the Indian financial services sector and play a crucial role in transforming the landscape of digital finance in India. He said that JFSL will be uniquely positioned to capture the growth opportunities in the financial services sector. He is expected to lay out the roadmap for JFSL at the next annual general meeting (AGM) of RIL, which is scheduled for August 28.

Source:
(1) Jio Financial Services set for listing; allots stocks to RIL’s shareholders https://indianexpress.com/article/business/companies/jio-financial-services-set-for-listing-allots-stocks-to-rils-shareholders-8889925/
(2) Jio Financial Services share price, listing date, record date, etc. https://www.etnownews.com/markets/jio-financial-services-share-price-listing-date-and-record-date-check-all-details-here-article-101576025
(3) Jio Financial stocks: Jio Financial shares credited to Demat accounts https://economictimes.indiatimes.com/markets/stocks/news/jio-financial-shares-credited-to-demat-accounts-of-ril-shareholders-all-eyes-on-listing-date/articleshow/102605983.cm