Jio Financial to be removed from FTSE indices on August 22; here's why

Jio Financial Services, the demerged entity of Mukesh Ambani-led Reliance Industries Ltd (RIL), will be removed from FTSE All-World index, FTSE MPF All-World index, FTSE Global Large Cap index and FTSE Emerging Index with effect from August 22, global index aggregator FTSE Russell said in a release on Thursday. FTSE said the move was necessitated as Jio Financial Services did not commence trading after 20 business days and no firm listing date has been announced by the energy-to-telecom behemoth.

FTSE Russell included Jio Financial Services in these indices on July 20. FTSE Russell, on July 13, said: “The listing date of Jio Financial Services has not yet been announced therefore it will remain in the index at a static estimated price until its trading commences on the exchange. If the trading day remains unknown after 20 business days, FTSE Russell will review the company in accordance with the FTSE Russell Spin-offs policy.”

Jio Financial Services, formerly Reliance Strategic Investments, will be the third-biggest non-banking financial company after the Bajaj Twins—Bajaj Finance and Bajaj Finserv—after its listing, the date for which is yet to be announced. There are expectations that Chairman Mukesh Ambani to announce the listing date at the forthcoming RIL annual general meeting on August 28.

At the discovered price of Rs 261.85 per share, the market capitalisation of Jio Financial Services will be around Rs 1.7 lakh crore at the time of listing.

Jio Financial’s discovered price is the difference between RIL’s closing price of Rs 2,841.85 on July 19 and the price of Rs 2,580, which was derived during the special trading session on July 20. Shares of Reliance Industries closed 1.44 per cent down at Rs 2537.75. On the other hand, the benchmark BSE Sensex closed 0.59 per cent lower at 65,151.02.