Jio Financial Demerger: Should you buy Reliance shares for windfall gains before record date?

economictimes.indiatimes.com:

Reliance Industries (RIL) who will be rewarded with 1 share of JFSL for every share of RIL owned. To be eligible for the value unlocking by billionaire Mukesh Ambani, you must be a RIL shareholder before the record date of 20 July, which means that the last day to buy the stock is July 19, tomorrow. «We recommend investors to buy RIL before the record date i.e.

20th Jul’23 and believe it to be a more economical way to buy Jio Financial Services which is likely to list at Rs 160/share (1x RIL’s treasury stock value),» said Eesha Shah of Axis Securities. The brokerage firm has valued Jio Financial at the treasury stock valuation of Rs 1,08,597 crore as the business model of the company is yet to be announced. With Isha Ambani joining the company's board as the non-executive director and ex-ICICI executive Hitesh Sethia as the new CEO and MD, JFSL majorly focuses on the NBFC market and credit market segments and has plans to foray into insurance, digital payment, and asset management verticals.

With RIL’s financial business moving to JFSL, it will own a 6.1% stake in Reliance Industries. Domestic brokerage Nuvama has also valued JFSL at Rs 1 lakh crore. «We estimate a value of Rs 168/share, which is currently a part of non-operating assets in our SoTP valuation,» Nuvama analysts said, adding that RIL stock could be least impacted by this demerger and instead see an upside of 3-For an efficient price discovery mechanism on the demerger record date, both BSE and NSE will conduct a special price discovery session for RIL shares from 9 am to 10 am on July 20.