Reliance’s Financial Arm, Jio Financial Services (JFSL), Astounds Shareholders With Higher-Than-Expected Share Price
New Delhi, 20th July 2023: Jio Financial Services Ltd (JFSL), the demerged financial services unit of Reliance Industries Ltd (RIL), surprised investors with a higher-than-expected share price of Rs 261.85 ($3.19) during a special trading session dedicated to the parent company’s stock.
The calculation of JFS’ share price was based on the difference between Reliance’s closing price on the previous day and the settling price of the stock at the end of the special session. Reliance’s stock settled at 2,580 rupees per share after the session, compared to its closing price of 2,841.85 rupees on Wednesday.
Analysts had initially estimated that the share price of Reliance Strategic Investments, soon to be renamed Jio Financial Services, would fall between Rs 160 and Rs 190 per share. However, the actual price exceeded these projections, leading to positive surprises for the shareholders.
As part of the demerger arrangement, Reliance shareholders will be entitled to receive one share of Jio Financial Services for each share they currently own in Reliance Industries. This restructuring marks the official spin-out of JFSL from Reliance Industries.
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