RIL rebounds 3% from day's low ahead of Jio Financial listing on August 21

Shares of Reliance Industries touched an intra-day high of Rs 2,576, bouncing back nearly 3 per cent from its intra-day low of Rs 2,508.50 on the BSE

Shares of Reliance Industries (RIL) moved higher by 1.6 per cent to Rs 2,576 on the BSE in Friday's intra-day trade, ahead of the listing of equity shares of its financial services arm Jio Financial Services (JFS) on Monday, August 21.

The stock bounced back 3 per cent from its intra-day low of Rs 2,508.50 amid heavy volumes. Trading volumes on the counter nearly doubled today with a combined 6.6 million equity shares of RIL having changed hands on the NSE and BSE till 02:22 PM. In comparison, the S&P BSE Sensex was down 0.05 per cent at 65,120.

“Effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (Formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities. The scrip will be in Trade-for-Trade segment for 10 trading days," the BSE said in a notice today. Every RIL shareholder got one share of JFS of Rs 10 face value.

JFS’ price was determined as Rs 261.85, or the difference between Rs 2,841.85, Reliance's closing price on July 19, and Rs 2,580, its price at the end of the special session on July 20. JFS' stock price is higher than analysts' estimate of Rs 160 to Rs 190. Post spin off; the stock price of RIL was down 3 per cent, as compared to 3.6 per cent declined in the S&P BSE Sensex till Thursday. RIL had hit a record high of Rs 2,635.17 (adjusted to demerger of JFS) on July 19.

JFS had shared earlier that it would have a presence across four businesses: Lending (Consumer Loans and Merchant loans), Insurance (both Life and Nonlife), AMC and Wealth Management, and Payments Bank.

While JFS will carry out the Lending business independently and organically; for the Insurance and AMC/Wealth Management businesses, it might enter into a joint venture or a partnership agreement with either an existing player or a new player that wants to enter the Indian market, according to Motilal Oswal Financial Services.