Reliance Industries has been a dominant force in the Indian market, and its ventures have always garnered significant attention. The announcement of the Jio Financial Services demerger was no exception. If you had invested ₹10,000 in Reliance when this demerger was announced, here’s what would have happened.
The Investment: On October 21, 2022, when the conglomerate formally announced the demerger, Reliance was priced at ₹2,47.6. An investment of ₹10,000 would have fetched you approximately 4 shares. With today’s stock price standing at ₹2,478, your investment would now be valued at approximately ₹10,014.
However, you would have also received four additional shares of the demerged entity Jio Financial Service. With the current value of around ₹220, it would have been worth around ₹880
Background: Jio Financial Services, initially known as Reliance Strategic Investments Limited, had a tumultuous start at the bourses. The stock hit the lower circuit immediately upon listing and continued this trend in subsequent sessions. Despite the rocky beginning, the stock rebounded, with shares trading nearly 5% higher in today’s session. This was after a significant block deal where around 64.6 million shares were exchanged.
However, the stock’s journey has been a roller coaster. After its listing, Jio Financial Services faced a decline of around 13.2% over three sessions. This decline was attributed more to technical factors than fundamental ones. The stock’s removal from key Sensex and Nifty indices was also postponed due to its performance.
Price Action: Jio Financial Services’ share price was trading 3.14% higher at ₹220.15 in the late hours of trading on Friday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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