Reliance Zooms 5%, Star Performer on Nifty, Sensex: Trigger?

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Reliance Zooms 5%, Star Performer on Nifty, Sensex: Trigger?
Credit: © Reuters.

By Malvika Gurung -- Shares of the most valued Indian firm Reliance Industries (NS: RELI ) jumped 4.86% to Rs 2,343.45 apiece on Friday, shining as the top performer on benchmark indices Nifty50 and Sensex .

RIL’s shares have surged 6.92% from its 52-week low of Rs 2,180 apiece attained on March 20, 2023, meaning the mega-cap behemoth has gained almost 7% in 8 sessions.

The oil-to-telecom conglomerate stock rallied after the company made an announcement regarding the demerger process of its financial services business.

Reliance Industries has stated that its creditors and shareholders will conduct a meeting with Reliance Strategic Investments and it's shareholders and creditors on May 2, 2023, for a Scheme of Arrangement for the demerger issue.

Upon demerger, the financial subsidiary of RIL, ‘Reliance Strategic Investments’ would be renamed Jio Financial Services Limited.

The demerger will be conducted on a share-swap arrangement, and each shareholder of Reliance Industries will be awarded one fully paid-up equity share of Jio Financial (demerged entity) having a face value of Rs 10 each, for every one share of Rs 10 each held by them.

RIL sees the following benefits of demerging its Financial Services business:

  • creation of an independent company focusing exclusively on financial services and exploring opportunities in the sector.
  • the independent company can attract different sets of investors, strategic partners, lenders and other stakeholders having a specific interest in the financial services business,
  • a financial services company can have higher leverage for its growth, and
  • unlocking the value of the Demerged Undertaking for the demerged company’s shareholders.

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  • Tech Zone @Tech Zone
    wow amazing decision by RIL finally long awaited news
    Like 0

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