Jio Finance shares valued at Rs 261.85 per piece in RIL demerger

20 Jul 2023 , 12:43 PM

Billionaire Mukesh Ambani’s new venture Jio Financial Services (JFSL) today surprised the Reliance Industries (RIL) bulls with a share price of Rs 261.85 a share, exceeding brokerage estimates of up to Rs 190.

The market price of Jio Financial Services (JFSL) on the NSE was Rs 261.85 per share at the end of a special pre-open call auction session on Thursday.

Earlier in the day, RIL announced that the post-demerger acquisition cost for Reliance Strategic Investments Limited will be 4.68%. Reliance Strategic Investments will be renamed as JFSL following demerger. Considering Wednesday’s BSE closing price of Rs 2,840 per piece, the acquisition cost comes to Rs 133.

Today’s exercise to value JFSL outperformed all brokerage expectations, which put the share price between Rs 160 and 190 per share.

JFSL’s total outstanding shares were 676.6 crore, bringing the company’s entire market value to Rs 1.77 lakh crore. 

JFSL’s constant price today is arrived at by calculating difference between RIL’s closing price on Wednesday and the price determined during today’s special pre-open session. 

RIL closed the previous session on the NSE at Rs 2,841.85, while the price today after the special session was Rs 2,580. Therefore, the price of JFSL is the difference in the price of RIL shares following the demerger, i.e., Rs 261.85.

The Ambani family planned to spin out JFSL as a distinct organization since the growth and expansion of the financial services firm would necessitate a differentiated strategy that was matched with its industry-specific risks, market dynamics, and growth trajectory.

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