Jio Financial Demerger: Mukesh Ambani ready to unlock value for 36 lakh RIL shareholders well before Diwali

economictimes.indiatimes.com:

Reliance Industries (RIL), billionaire Mukesh Ambani is planning to list Jio Financial Services (JFSL) by September this year. The move, which will unlock value for its 36 lakh-strong shareholder base, will lead to the creation of the fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance. Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Jefferies at Rs 179, while Centrum Broking has a range of Rs 157-190.

Market insiders believe that Ambani may announce the record date for the allotment and listing of Reliance Strategic Investments, which would be renamed to JFSL, in July or August. In the company's annual general meeting (AGM), the date of which has not been announced yet, Ambani is expected to lay out the roadmap for JFSL before it gets listed on stock exchanges. JPMorgan, which has an overweight rating on RIL with a target price of Rs 2,960, believes that the implied value could move higher once the business strategy and targets are made public.

Ahead of the demerger and listing, RIL shares are in focus as shareholders of the parent company will get one share of Jio Financial for every share they own of RIL. The stock is already up 13% in the last three months. «This company is starting with an underlying net worth of about Rs 1,50,000 crore, out of which there are about Rs 1,10,000 crore worth of shares of Reliance Industries and the balance in the form of the real net worth.