Reliance Industries (RIL) shares have surged over 4.5%, reaching a new 52-week high of Rs 2,755. The energy-to-telecom conglomerate's decision to demerge its financial services arm, Reliance Strategic Investments, and rename it as Jio Financial Services (JFSL), has played a significant role in the stock's upward momentum.
At a recent board meeting, RIL finalized July 20 as the record date for the demerger after receiving regulatory approval. This move aims to unlock value for RIL's massive shareholder base of 36 lakhs. Under the plan, RIL shareholders will receive one share of Jio Financial for each share they own of RIL. Over the past three months, RIL shares have already seen a 13% increase.
The announcement of the record date and the demerger scheme has made RIL shares highly active in the market, driving gains in the S&P BSE Sensex and Nifty50 indices.
According to a regulatory filing by RIL, July 20, 2023, has been designated as the record date for determining the equity shareholders entitled to receive the new equity shares of the resulting company. The effective date of the demerger scheme is July 1.
In addition to the demerger news, Reliance Retail, a subsidiary of RIL and India's largest retailer, has announced a reduction in its equity share capital. The company plans to extinguish or cancel the stock, excluding the shares held by its holding company, Reliance Retail Ventures, at a valuation of Rs 1,362 per share.
With these recent developments, Reliance Industries generating excitement among investors, leading to a surge in share price. The demerger and equity reduction strategies reflect RIL's focus on unlocking value and strengthening its position in the market. Investors will be keeping close eye on the stock as the rally continues, will be assessing the potential impact on their investment decisions.