Reliance Industries Ltd (RIL) has received approval from the National Company Law Tribunal (NCLT) for the demerger of its financial services undertakings, sparking speculation about the upcoming IPO of Jio Financial Services. Though RIL is yet to make an official announcement regarding the demerger, analysts have already estimated the expected share price for Jio Financial Services.
According to Jefferies, the share price of Jio Financial Services is expected to be around ₹179 ($2.41) per share. On the other hand, JP Morgan has estimated the share price to be around ₹189 ($2.54) per share. These estimates are based on the current asset value of the company. However, Avinash Gorakshkar, Head of Research at Profitmart Securities, believes that the asset value of the company could change if a value investor joins before the listing of Jio Financial Services shares.
Market speculations suggest that the entry of value investors ahead of the listing could prove to be a lucrative deal for eligible shareholders after the demerger. The expected demerger report date is in the next two months, with a potential announcement from Reliance by the end of August or in September 2023. Following that, the listing of Jio Financial Services shares could be expected within a month.
As the demerger report date is anticipated to be by September 2023, the listing of Jio Financial Services shares could take place by the end of September or in October 2023.
It should be noted that these views and estimates are from individual analysts and do not represent the views of Mint. Investors are advised to consult with licensed experts before making any investment decisions.
In conclusion, with the demerger of RIL’s financial services undertakings approved by the NCLT, anticipation grows regarding the upcoming IPO of Jio Financial Services. Analysts have estimated the expected share price for Jio Financial Services, and speculations suggest the entry of value investors could lead to significant gains for eligible shareholders. The demerger report date is expected in the next two months, with the listing of shares projected to take place shortly after. Investors are advised to seek professional guidance before making any investment decisions.
