Jio Financial Services to be included in FTSE indices on July 20

Mukesh Ambani-led Reliance Industries Ltd's subsidiary Jio Financial Services (JFS) will be incorporated in many FTSE indices on July 20, 2023, though trading will not take place because the listing date is yet to be finalised.

According to a release by global index aggregator FTSE Russell, “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 trading commences on the exchange.”

JFS will be included in the MPF All-Word, Global Large Cap, and Emerging indices of FTSE. The issue size remains 6,765,591,509, with investability weighting of 49.66%.

The RIL shares dropped 0.051% to ₹2,742.10 during intra-day trade today. The stock opened a gap up at ₹2,751.05 and surged to an intra-day high of ₹2,760.80. The conglomerate's m-cap, at the current share price, stands at ₹18,55,503.18 crore. In contrast, the BSE Sensex is up 0.32% at 65,769.27, while the Nifty 50 is 0.34% up at 19,480.50 points.

RIL earlier fixed July 20, 2023, as the record date for the demerger of its wholly-owned subsidiary, Reliance Strategic Investments Ltd (RSIL), from the parent company, which would be later renamed Jio Financial Services Limited (JFSL).

Under the demerger scheme, Reliance shareholders will get one share of RSIL for every share they own of RIL as of the record date. The demerger will pave the way for the splitting-off of the financial services arm into a separate entity, which will be listed on the domestic stock exchanges, BSE and NSE.

The decision was taken at RSIL’s board meeting on July 8, 2023, days after the National Company Law Tribunal (NCLT) gave its approval for the proposed demerger.

In May this year, the oil-to-telecom conglomerate received the approval of its shareholders and creditors for the demerger plan. It had informed exchanges that the demerger would be done through a share-swap arrangement under which Reliance shareholders will be issued one equity share of JFSL for every share they hold in the company.

The investment of RIL in Reliance Industrial Investments and Holdings Limited (RIIHL), which is a part of the financial services undertaking of RIL, will stand transferred to JFSL.

JFSL plans to acquire liquid assets to provide adequate regulatory capital for lending to consumers and merchants. Besides, it will incubate other financial services verticals such as insurance, payments, digital broking, and asset management for at least the next three years of business operations.