Jio Financial Services in Nifty50 from Thursday

Jio Financial Services in Nifty50 from Thursday

Jio Financial Services (JFSL), the de-merged entity of Reliance Industries (RIL), will be included in the Nifty50 from July 20, National Stock Exchange said on Monday.

“NSE vide its circular dated July 12 has announced a special pre-open session to be conducted for Reliance Industries in the Capital Market segment on July 20, on account of demerger of its financial services business into Reliance Strategic Investments (‘spun-off entity’ to be renamed Jio Financial Services),” the press release said.

Besides the Nifty50, the company will also be included in the Nifty 100, Nifty 200, and Nifty 500.

Axis Securities values JFSL post-demerger at a treasury stock valuation of Rs 1.08 trillion. Total outstanding shares stand at 6.7 billion, implying each share’s valuation at Rs 160, it said. The shareholding pattern will be the same as that of RIL. The present market cap of RIL is `18.92 trillion.

The brokerage added in its note: “We value JFSL at treasury stock valuation as the business model of the company is yet to be announced. Even if the entire allocation is not directed towards JFSL, the company might be able to leverage the same for regulatory funds.”

Further, Nuvama values the de-merged financial services business at Rs1 trillion or168 a share, which is 5% of the some-of-the-parts (SoTP) valuation of RIL.

Isha Ambani has been appointed non-executive director on the JFSL board, with former ICICI executive Hitesh Sethia appointed MD and CEO. The company’s major focus is on NBFCs and the credit market segment. It also plans to venture into insurance, digital payments, and asset management.

RIL had, in October last year, announced the demerger with a 1:1 swap ratio, with shareholders set to receive one equity share of JFSL with face value Rs 10, for one fully paid-up equity share of Rs 10 held in RIL.