What Mukesh Ambani's buy 1 get 1 offer mean for 36 lakh RIL shareholders
Mukesh Ambani announced the timeline of a 'buy 1 get 1' offer for shareholders of Reliance Industries on July 8, retail investors have been chasing India's largest stock to get rewarded with shares of Jio Financial Services (JFSL) ahead of its big-bang listing. If you are one of those 36 lakh RIL shareholders at the end of today's trading session, you will be eligible to earn one share of JFSL for every stock of RIL owned.
On Tuesday, RIL stock ended at its all-time closing high of Rs 2,820.45 on NSE, taking its market value to Rs 19.1 lakh crore or $232.8 billion.What is the deal?All RIL shareholders at the end of the trading day on July 19 will be eligible to get JFSL shares in the ratio of 1:1. For example, if you own 100 RIL shares, you will be awarded with 100 JFSL shares.What will be the share price of JFSL?JFSL's constant price will be calculated through a special pre-open session in RIL stock from 9-10 am on Thursday.
The constant price will be the difference between RIL's closing price on Wednesday and the price derived during the special pre-open session.What do estimates say?JFSL has been valued above the Rs 1-lakh crore mark. Brokerage estimates for JFSL vary between Rs 160-190.
Axis Securities sees the stock at Rs 160, Nuvama at Rs 168, JP Morgan’s implied value for the business is at 189 while the base case valuation for Jefferies is Rs 179.Why the demerger?RIL said the expansion and growth of financial services would require a differentiated strategy aligned to its industry-specific risk, market dynamics and growth trajectory. The nature and competition in the financial service business are distinct from other businesses and are capable of attracting a different set of investors, strategic partners,
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