Jio Financial Services listing: Shares of Jio Financial Services, the financial arm of Reliance Industries (RIL), will get listed on bourses on August 21, BSE said in its circular on Friday, August 18. Jio Financial Services was recently demerged from its parent company, Reliance Industries. 

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In its circular, BSE said, "Trading Members of the Exchange are hereby informed that effective from Monday, August 21, 2023, the equity shares of Jio Financial Services Ltd (formerly known as Reliance Strategic Investments Limited) shall be listed and admitted to dealings on the Exchange in the list of T Group of Securities. Further, in terms of SEBI circular No. CIR/MRD/DP/02/2012 dated January 20, 2012, the scrip will be in the trade-for-trade segment for 10 trading days."

Last month (on July 20), stock exchanges BSE and NSE conducted a one-hour special "price discovery" session for the first time ever to determine the value of Jio Financial Services' shares.

The share price of Jio Financial Services (JFS) was set at a much higher-than-expected Rs 261.85 ($3.19). JFS' share price was calculated as the difference between Reliance's last close and the stock's settling price at the end of the special session.

The price beat all the analysts' estimates, as they had estimated the share price of the demerged entity between Rs 160 and Rs 190 per share.

All about demerger 

Reliance Industries announced last October that it would demerge and list its financial services business, Reliance Strategic Investments, which will be renamed Jio Financial Services (JFS). Reliance shareholders would get one share of Jio Financial Services for holding one share of Reliance.

The company had set July 20 as the demerger record date, or the cut-off date used to determine which shareholders are eligible. Veteran banker KV Kamath will be the non-executive chairman and former ICICI Bank executive Hitesh Sethia will be the CEO.

Analysts believe JFS' access to vast amounts of data and Reliance's possession of a non-bank finance company licence will help the company kick-start lending. Macquarie Research also said the company will "likely be an AAA-rated entity that can borrow at attractive rates."

With inputs from Reuters