Jio, Retail news to boost RIL shares
MUMBAI : Shares of Reliance Industries Ltd (RIL), which have underperformed the broader market this year, are expected to get a sentiment boost this week following news about the upcoming demerger and listing of Jio Financial Services, as well as the buyout of minority shareholders in Reliance Retail, analysts said. The firm on Saturday informed exchanges about the National Company Law Tribunal approving the planned demerger, as well as the record date for the same.
The announcement came a day after the RIL board decided to cancel 0.1% equity held by shareholders in unlisted Reliance Retail for a consideration that values it at almost ₹8 trillion. Both filings came after the close of trading on Friday, and the stock may react favourably to them on Monday, analysts said.
“The expectations of listing of Jio Financial, now that the record date has been fixed, could see the stock test ₹2,700 when markets open Monday," said Rajesh Palviya, head of research for technical and derivatives, Axis Securities. “Follow-up buying over the next few sessions is likely after the stock tests that level." This puts the stock on track for as much as a 2.5% gain on Monday at opening from Friday’s close of ₹2,633.60.
The RIL stock has underperformed the benchmark Nifty 50, rising a mere 3.4% in 2023 so far against an almost 7% jump in the Nifty, which closed at 19,331.8 points on Friday. The demerger and anticipated listing will unlock value for RIL’s 3.64 million shareholders.
The company has fixed 20 July as the record date to ascertain shareholders eligible to receive the demerged entity’s shares. RIL also announced on Saturday that Reliance Strategic Investments Ltd (RSIL), to be rechristened Jio Financial Services, will issue and allot
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