MUMBAI: Jio Financial Services, the demerged financial services unit of Reliance Industries, experienced an unexpectedly high share price of Rs 261.85 during a special trading session dedicated to its parent company’s stock on Thursday.
On Thursday, Reliance’s stock was being traded at Rs 2,580 per share, in contrast to its previous closing price of Rs 2,841.85 on Wednesday.
Market analysts had initially estimated the share price of the renamed entity, Reliance Strategic Investments, which will now be known as Jio Financial Services, to be valued between Rs 160 and Rs 190 per share.
Although JFS stock is set to be included in major indexes, including India’s benchmark Nifty 50, it will remain inactive until its official listing.
The specific listing date is expected to be announced during Reliance’s upcoming annual general meeting.
According to analysts, Jio Financial Services has a lot of potential. It is well-positioned to capitalize on the growing demand for financial services in India. The company has a strong management team and a good track record.
Since the announcement of the record date for the demerger on July 8 (which was originally announced in October), shares of Reliance have surged by 8%.
(With inputs from agencies)