“The next three years would be interesting from the Reliance perspective. As of today, Reliance Financial looks expensive because people are valuing the treasury shares at 100% market value which is not given to other companies and the balance business is being put at almost four to five times net worth.”
The demerger of Jio Financial Services Ltd (JFSL) from Reliance Industries Ltd (RIL) is set to take place on July 20. Wednesday is the last date for shareholders to buy shares of Reliance Industries to participate in the merger. ET NOW spoke to Sushil Choksey of Indus Equity Advisors about whether investors should buy RIL shares ahead of the demerger., Companies News, Times Now
Under the merger deal, all RIL shareholders, as of the record date of 20 July, will earn one share of Jio Financial Services (JFSL) for every RIL share they own. Investors, therefore, have time till 19 July to buy RIL shares to be eligible for getting JFSL shares.
“One had to assume that Reliance would not permit what is happening over the past few years in the grey market as far as Reliance Retail was concerned. It is a candidate where Reliance as a parent and shareholders would get a reward like what Jio Financials has been announced. The same thing would happen to Retail and Jio on the telecom side.”
Oil-to-telecom conglomerate
Reliance Industries contributed to most of the gains in benchmark index Sensex on Friday as it ended the day at Rs 2,094.90, up 5.9% on BSE. Sushil Choksey of Indus Equity Advisors decodes factors behind the rally in RIL stock. Edited excerpts:
Was today's rally in Reliance shares surprising? What were the triggers?
Reliance was underperforming since the last quarter. Nifty has gone up by almost 700-800 points since then. RIL has the highest weightage in Nifty. The prices of petrochemical products might be at a decade high now. The prices of polymer has also gone up. There were some reports by some foreign brokerage houses this morning related to this.