Jio Financial demerger: Will Reliance Industries' July F&O contracts have an early expiry?
Every Reliance shareholder will get one share of the new firm for every share held in the parent
- Jul 10, 2023,
- Updated Jul 11, 2023 4:07 PM IST
Mukesh Ambani-led Reliance Industries Ltd (RIL) has on Saturday fixed July 20 as the record date for the purpose of determining the shareholders who are entitled to receive shares of Reliance Strategic Investments Ltd (RSIL).
All existing futures and options (F&O) contracts of RIL for July could have an early expiry on July 19 because of share price discovery that will happen for RSIL, which will be renamed as Jio Financial Services (JFSL).
New F&O contracts might emerge post share price discovery on July 20. However, there has been no intimation so far from NSE about the possible early expiry of RIL's F&O contracts. It is to be noted that all monthly contracts for individual stocks expire on last Thursday of every month, which is July 27 in the case of July.
"In the run-up to the record date, based on existing rules, all F&O contracts will expire on July 19. The detailed terms of rights issue like issue price, right entitlement, record date, timing, and terms of payment will be intimated in due course of time," said IIFL Securities.
Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Centrum Broking has set a price range of Rs 157-190. Jefferies has estimated that Jio Financial Services' share price would be around Rs 179 apiece.
On Monday, RIL's scrip on BSE closed nearly 4% higher at Rs 2,735.
Last week, NSE announced that HDFC Ltd's F&O contracts will expire on July 12 on account of the housing financing firm's mega merger with HDFC Bank.
Every Reliance shareholder will get one share of the new firm for every share held in the parent.
In December 2005, NSE announced that RIL's F&O contracts will not be introduced for March 2006. "All existing contracts for January and February 2006 will expire on January 17, 2006. All positions in RIL for January and February expiry contracts will have to be squared off on January 17," said NSE in a circular.
The move was necessitated when Mukesh Ambani and his brother Anil had split. Mukesh got control of oil and gas, petrochemicals, refining and manufacturing, while Anil got electricity, telecoms and financial services.
Meanwhile, RIL had, earlier this year, announced plans to demerge its financial services undertaking into Reliance Strategic Investments Limited and rename and list it as Jio Financial Services Limite (JFSL). It will lend to consumers and merchants based on proprietary data analytics and will eventually branch out to insurance, payments, digital broking and asset management.
The spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.
The board of directors of the new company at a meeting held on July 7 approved the appointment of new directors. Isha Mukesh Ambani, the elder daughter of the billionaire, has been appointed as non-executive director. Alongside, Reliance executive Anshuman Thakur too has been appointed as non-executive director.
It said former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors.
Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for a period of three years.
Mukesh Ambani-led Reliance Industries Ltd (RIL) has on Saturday fixed July 20 as the record date for the purpose of determining the shareholders who are entitled to receive shares of Reliance Strategic Investments Ltd (RSIL).
All existing futures and options (F&O) contracts of RIL for July could have an early expiry on July 19 because of share price discovery that will happen for RSIL, which will be renamed as Jio Financial Services (JFSL).
New F&O contracts might emerge post share price discovery on July 20. However, there has been no intimation so far from NSE about the possible early expiry of RIL's F&O contracts. It is to be noted that all monthly contracts for individual stocks expire on last Thursday of every month, which is July 27 in the case of July.
"In the run-up to the record date, based on existing rules, all F&O contracts will expire on July 19. The detailed terms of rights issue like issue price, right entitlement, record date, timing, and terms of payment will be intimated in due course of time," said IIFL Securities.
Global brokerage firm JPMorgan has estimated Jio Financial's share price at Rs 189, Centrum Broking has set a price range of Rs 157-190. Jefferies has estimated that Jio Financial Services' share price would be around Rs 179 apiece.
On Monday, RIL's scrip on BSE closed nearly 4% higher at Rs 2,735.
Last week, NSE announced that HDFC Ltd's F&O contracts will expire on July 12 on account of the housing financing firm's mega merger with HDFC Bank.
Every Reliance shareholder will get one share of the new firm for every share held in the parent.
In December 2005, NSE announced that RIL's F&O contracts will not be introduced for March 2006. "All existing contracts for January and February 2006 will expire on January 17, 2006. All positions in RIL for January and February expiry contracts will have to be squared off on January 17," said NSE in a circular.
The move was necessitated when Mukesh Ambani and his brother Anil had split. Mukesh got control of oil and gas, petrochemicals, refining and manufacturing, while Anil got electricity, telecoms and financial services.
Meanwhile, RIL had, earlier this year, announced plans to demerge its financial services undertaking into Reliance Strategic Investments Limited and rename and list it as Jio Financial Services Limite (JFSL). It will lend to consumers and merchants based on proprietary data analytics and will eventually branch out to insurance, payments, digital broking and asset management.
The spinoff, which will create fifth-largest financier in terms of capital and compete directly with the likes of Paytm and Bajaj Finance, will complement Reliance's consumer businesses, which include India's largest wireless operator with about 428 million users, top retail chain with over 17,000 stores.
The board of directors of the new company at a meeting held on July 7 approved the appointment of new directors. Isha Mukesh Ambani, the elder daughter of the billionaire, has been appointed as non-executive director. Alongside, Reliance executive Anshuman Thakur too has been appointed as non-executive director.
It said former bureaucrat Rajiv Mehrishi, who served as home secretary as well as CAG, has been appointed independent director on RSIL for five years. Sunil Mehta, chief executive of Indian Banks' Association, and Bimal Manu Tanna, a chartered accountant who worked with PwC, too have been appointed independent directors.
Banker Hitesh Kumar Sethia has been appointed managing director and chief executive officer of RSIL for a period of three years.