Jio Financial Services shares: When will the stock get listed? JFS weightage in Nifty, Sensex & more

It took 45 days for Piramal Pharma to get listed post its demerger from Piramal Enterprises. For the demerged NTPC Steel, it took four months to het listed on bourses. But at least brokerage see lesser gap for Jio Financial Services (JFS).

"There is no concrete listing day yet and it may take few weeks’ time to get all the listing approvals. JFSL being carved out from one of the biggest giants. We expect the listing process should be fast-tracked and quite likely JFS may be listed in a month’s time (or even earlier)," said Nuvama Institutional Equities.

Nomura India expects RIL to provide a timeline for JFS’s listing and a detailed strategy for the new entity at its annual general meeting (AGM) in the coming weeks. Axis Securities sees JFS to get listed in the next 2-3 months.

Analysts noted that the derived price for JFS post the special pre-open session on Thursday came quite ahead of their expectations, suggesting the market is discounting the financial services business' future prospects.

"The market discovered price of Rs 261.85 per share of Jio Financial Services has come much higher than most brokerages’ estimates. This high price is a reflection of the market’s assessment of Jio Financials’ potential. The wide reach of JFS through RIL’s other business segments like Reliance Retail has the potential to grow the company at a fast pace for many years to come. The market is discounting this potential," said . V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

With the temporary inclusion of Jio Financial Services, JFS now commands 1.12 per cent weight in the BSE benchmark Sensex, with Reliance Industries (RIL) weight falling to 11.70 per cent from 12.77 per cent earlier. In the case of Nifty, JFS weight stood at 1 per cent while that of RIL has declined to 10.03 per cent from 10.92 per cent.

At the current price, JFS has an implied market capitalisation of Rs 1.66 lakh crore. Nomura India said RIL’s significant scale through its retail stores, registered retail consumers of 24.9 crore and a telecom subscriber base of 43.9 crore can enable a strong ramp-up of this business and drive valuations further.

"However, we do not discount the inherent differences between RIL’s existing businesses and financial services," it said.

Centrum Broking cited RIL's press release that had a formula for determination of cost of acquisition of equity shares of the company (RIL) and Reliance Strategic Investments Ltd (RSIL), which will be renamed as Jio Financial Services Ltd (JFSL).

"The formula states apportion of de-merger cost of acquisition of equity shares of the RIL in the ratio of 4.68 for RSIL and 95.32 for RIL. Income Tax provisions states that the Cost of Acquisition in case of demerger will be net worth of the resulting company (RSIL) divided by the net worth of the demerged company (RIL). Thus, we use the standalone net worth of RIL of Rs 5 lakh crore and apportionment ratio of 4.68 per cent of RSIL to arrive at net worth of RSIL of Rs 23,500 crore. Please note, that the effective date of scheme was July 1, 2023. This ratio will be calculated on the standalone BS as on June 30. Since, RIL has not reported its Q1FY24 results yet, we have based our calculation on net worth as on March 31. The resulting company had a net worth of Rs 27,960 crore as on FY22," Centrum said.

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