RIL-Jio Financial Services Demerger: Know Cost Of Acquisition Of RIL Shares, Other Details

Ahead of Reliance Industries (RIL) and Reliance Strategic Investments Limited demerger, the board of RIL has declared the cost of acquisition of Reliance and Jio Financial Services.

RIL has informed both exchange houses, in its filing, that the cost of acquisition for Reliance Industries Ltd would be 95.32% while the rest 4.68% for Reliance Strategic Investments Limited.

“For the purpose of determining the post demerger cost of acquisition of equity shares of the Company and RSIL, you are advised to apportion your pre demerger cost of acquisition of equity shares in the Company in the following manner: Reliance Industries Limited (95.32%), Reliance Strategic Investments Limited (4.68%),” RIL said in the filing.

Also read: Reliance Industries Demerger: Less Than 48 Hours Left For The Big Event, Here’s All You Should Know About Jio Financial Demerger | Explained

Reliance Strategic Investments Limited (RSIL) set to be demerged from RIL on July 20. It will be renamed Jio Financial Services (JFS) and be listed on exchanges at a later date.

"You are advised to apportion your pre-demerger cost of acquisition of equity shares in the company in this manner. This communication is for the benefit of the shareholders and the company takes no express or implied liability in relation to this guidance," the company said. 

As per the closing price of RIL at Rs 2,853 per share, the implied value of the ex-demerged entity is Rs 2,707 and that of RSIL is Rs 133.

The shares of RIL were not available for trading for the first 45 minutes on Thursday, July 20 as a result of the demerger of its financial services arm. RIL shares also went through a special pre-open call auction today between 9:00 am to 10:00 am IST today, in which one could only place, cancel, or modify the orders

Also read: Reliance Industries Likely To Pay Dividend To Its Investors Nearly After A Year

According to the scheme arrangement, shareholders of RIL will get 1 share of the demerged entity RSIL for every 1 share held by them in the conglomerate.

Investors should note that this new stock will be available for normal trading at Nifty50 at a constant price till the time the listing date is announced. It will be removed from Nifty 50, three days after the stock lists.