Reliance Industries Limited (RELIANCE) in October 2022 announced the demerger of its financial services business (Reliance Strategic Investments Limited) into a separate entity named Jio Financial Services. Shareholders of RELIANCE will get one share of Jio Financial Services for every one share they hold in RELIANCE.
The record date to determine the shareholders of RELIANCE who will be eligible for receiving the shares of Jio Financial Services has been set as July 20, 2023. You can check the announcement here.
You will be eligible for the scheme of demerger if you have bought the shares of RIL on or before July 19, 2023.
Generally, the credit of shares can take between 30 - 45 days from the record date. This can happen sooner too in the case of Reliance Industries as it is part of Nifty 50. You’ll receive an email from CDSL once the shares are credited to the demat account.
The shares of Jio Financial Services Limited will start trading on the exchanges from August 21, 2023 under the symbol JIOFIN.
What will be the average price of Reliance shares I hold and the shares I receive of Jio Financial Services?
The average price is updated according to the Cost of Acquisition released by the company. This is usually released after the record date. We’ll update the post once we have an update on this.
Update: As per the announcement by the company, Based on the closing price of 19th July, 2023, Cost of acquisition for both the companies will be as follows:
Reliance Industries Ltd - 95.32% of 2841.85 = 2708.85
Reliance Strategic Investments Ltd (Jio Financial Services) - 4.68% of 2841.85 = 133
For example: If you have bought the shares of Reliance Industries before the ex-date (July 20, 2023) for Rs. 2500, the new average price of Reliance Industries will be 95.32% of 2500 = 2383.
The average price for Jio Financial Services will be 4.68% of 2500 = 117.
All existing futures and options contracts of RELIANCE expiring on July 27, 2023, August 31, 2023, and September 28, 2023, will expire on July 19, 2023, and will be physically settled just like it happens on the day of monthly expiry. You can learn more about physical settlement here .
All positions in the existing F&O contracts on the underlying RELIANCE will cease to exist pursuant to the final settlement on July 19, 2022. New futures and options contracts will be introduced on RELIANCE from July 20, 2023, with July 27, 2023, August 31, 2023, and September 28, 2023 expiry dates. You can check the announcement from the exchange here.
A Pre-open Call Auction Session will be conducted for RELIANCE in the Capital Market segment on July 20, 2023, from 9 AM to 10 AM to determine the opening price of RELIANCE based on which a minimum of five in-the-money strikes, one at-the-money strike, and five out-of-the-money strikes will be made available. The F&O trading for RELIANCE contracts will start at 10 AM.