- By Priyanka Payal
- Thu, 13 Jul 2023 12:29 PM (IST)
- Source:JND
Mukesh Ambani’s Reliance Industries is the country's most valuable company, with a market capitalisation of around Rs 1,882,903 crore at the time of writing this article. The share price of Reliance Industries Ltd (RIL) has seen a rally in the last five days after the company fixed July 20 as the record date for the demerger of Jio Financial Services.
On July 8, the company fixed July 20, as the record date to determine shareholders entitled to receive shares in its new financial services entity. Under the arrangement, Reliance Strategic Investment (RSIL) will be demerged and rebranded and listed as Jio Financial Services.
The heavyweight stock rose as much as 1.37% to hit a record high of Rs 2,802 on the BSE on Wednesday (July 12). In the last five day days, the stock has gained 5.17%. On Thursday (July 13), RIL shares were spotted trading 0.62% higher at Rs 2,784.95 per share at 11:46 am IST.
So, why are investors in a mad rush to buy RIL stock? The answer is the merger deal, which states that all RIL shareholders, as of July 20, will get one share of Jio Financial Services (JFSL) for every RIL share they own. Investors, thus, have limited time to buy RIL shares to be eligible for getting JFSL stock.
In an exchange filing, the company said: “In accordance with provisions of the Scheme, Reliance Strategic Investments Limited (“RSIL”) shall issue and allot 1 (One) fully paid-up equity share of RSIL having face value of Rs 10 (Rupees Ten) each for every 1 (One) fully paid-up equity share of Rs 10 (Rupees Ten) each of the Company (“Resulting Company New Equity Shares”) to the shareholders of the Company whose names are recorded in the register of members and/or records of the depository as on the Record Date.”
The Billionaire Mukesh Ambani is likely to get JFSL listed in the stock exchanges within the next 2-3 months. Market insiders are expecting the Ambani family to spill the beans at the company's annual general meeting (AGM), the date of which has not yet been announced.
Mukesh Ambani's daughter Isha Ambani has been appointed as a non-executive director of Jio Financial, the demerged financial services unit of Reliance Industries Ltd, the company said on July 8.
Another reason behind the strong buying of RIL shares is the Launch of Jio Bharat. Recently, Reliance Jio announced the launch of a new internet-enabled phone, Jio Bharat, priced at Rs 999.
The launch of the device comes at a time when the company is trying to make India free of 2G under its campaign of '2G-Mukt Bharat'.
The Beta trial for the initial 1 million devices commenced from July 7 onward, according to Jio's press release.
The stock gave a 3-year return of 43.04% as compared to the Nifty 100 which gave a return of 77.05% (as of the last trading session).
