Mukesh Ambani’s Reliance share holders will get one share of the firm for each share retained. Learn how this will help the company’s more than 36 lakh stockholders.
Mukesh Ambani, India’s and Asia’s richest man, launched a one-on-one free offer to Reliance Industries shareholders on July 8. Since then, regular investors have been rushing to acquire Reliance shares. The binge comes to a stop today, since the record date for Reliance’s banking industry demerger is July 20. If you were successful in obtaining Reliance shares, you would get one share of Jio Financial Services Limited (JFSL) for each Reliance share. The company’s shares finished at Rs 2840, up 0.62 percent, on Wednesday. Reliance has almost 36 lakh shareholders. Let us know what Mukesh Ambani’s one-on-one free offer for them means…
How many shares am I going to get?
After today’s trading session, all Reliance shareholders will be eligible to obtain JFSL shares in a 1:1 ratio. For example, if you own 100 Reliance shares, you will receive 100 JFSL shares.
What will the share price be?
On Thursday, the JFSL constant price will be determined. From 9 a.m. to 10 a.m., the NSE and BSE will have a special pre-open session for Reliance shares. This price will differ from Reliance’s closing price today and will be determined during the pre-open session.
What is the ballpark figure?
JFSL’s worth is believed to be more than Rs 1 lakh crore. The firm has set the price of its stock at between Rs 160 and 190. Axis Securities values it at Rs 160, whereas Nuwama values it at Rs 168, JP Morgan at Rs 189, and Jefferies at Rs 179.
What’s the point of demerger?
According to Reliance, a distinct strategy is required for the expansion and growth of financial services. This sector’s characteristics and rivalry are distinct from those of other sectors. In this regard, the moods of investors, partners, lenders, and other stakeholders change. This will create value for Reliance’s stockholders.
What will JFSS’s business be?
Mukesh Ambani can elaborate on this during Reliance’s annual general meeting. Reliance Industrial Investment and Holdings, Reliance Payment Solutions, Jio Payments Bank, Reliance Retail Finance, Jio Information Aggregator Services, and Reliance Retail Insurance Broking are also part of the group.
When will the firm go public?
JFSL is likely to be listed within the next two to three months. This issue can be resolved at Reliance’s AGM. The date of Reliance’s AGM has yet to be confirmed, however it might take place in July or August.
What will become of Reliance following the demerger?
Reliance demerged the four firms on June 19, 2005, and its share price increased 38% in 2006. According to Jai Irani of Nuwama, it can be seen this time as well. Its cost might rise by three to five percent.
source – Mint