Jio Financial Services To Get Listed On Aug. 21
The National Company Law Tribunal had approved the planned demerger of Jio Financial Services from parent Reliance Industries.
Jio Financial Services Ltd. will start trading on Aug. 21.
At the special pre-open session conducted on July 20, JFSL shares were priced at Rs 261.85 apiece, which was a much higher price than the apportionment cost of Rs 133 per share that RIL had set for JSFL. That gives it a market value of a little over $20.2 billion, or Rs 1.66 lakh crore, after the demerger.
That's about four times its book value, said Sushil Choksey, chief executive at Indus Equity Advisors, to BQ Prime. By comparison, Bajaj Finance Ltd., one of India's biggest non-bank lenders, trades at six times its book value.
On Aug. 11, BQ Prime had reported that RIL had credited shares of Jio Financial Services Ltd. to the demat accounts of eligible shareholders.
RIL will conduct its annual general meeting on Aug. 28.
Shares of Reliance Industries Ltd. pared early losses to advance upon the announcement.
The scrip rose 1.40% to Rs 2,373.6 apiece as of 2:26 p.m., as compared with a 0.04% decline in the NSE Nifty 50. The stock advanced as much as 1.47% intraday, paring early losses.
It has risen 10.7% on a year-to-date basis. The total traded volume stood at two times its 30-day average. The relative strength index was at 60.
Of the 40 analysts tracking the company, 32 maintain a 'buy' rating, five recommend a 'hold' and three suggest a 'sell' on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 8.7%.
