Shares of Reliance Industries Ltd were the most actively traded stock on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on Monday, July 10. The scrip rose as much as 4.6% in the trading session after the company announced that its board had fixed July 20 as the record date for the demerger of its financial services arm Reliance Strategic Investments Ltd (RSIL). 

The National Company Law Tribunal (NCLT) has approved the conglomerate’s demerger plans. The company said in the statement, “Following the terms of the Scheme, Thursday, July 20, 2023, has been fixed as the Record Date to determine the equity shareholders of the Company entitled to receive the Resulting Company New Equity Shares.” 

According to the scheme, eligible shareholders will receive one share of RSIL having a face value of ₹10 (Rupees Ten) each for every 1 fully paid-up equity share of ₹10 of RIL. RSIL would later be renamed and listed as Jio Financial Services Ltd (JFSL).

The stock is expected to be listed by the end of August. Brokerages and banks estimate the share price of JFSL to be around Rs 179-189 apiece, valuing the company in the range of Rs 90,000-1,50,000 crore. 

At 1:30 pm, Reliance shares were trading at Rs 2749.80, 4.4% higher from the previous close. The stock breached its previous lifetime high of Rs 2755. The market cap of the company stood at Rs 1,861 lakh crore. 

Former finance secretary Rajiv Mehrishi, former head of the Punjab National Bank Sunil Mehta, and certified public accountant Bimal Manu Tanna will be appointed as additional directors for five years ending on July 6, 2028. Mukesh Ambani’s daughters, Isha Ambani and Anshuman Thakur, have also been appointed non-executive directors.

Hitesh Kumar Sethia will serve as managing director and CEO of the demerged entity for three years, subject to the Reserve Bank of India’s approval. All appointments are subject to the approval of the Reserve Bank of India.