Stock in News: Following its demerger with Reliance Industries Ltd. (RIL), Jio Financial Services achieved a remarkable valuation of Rs. 261.85 per share on the National Stock Exchange during a special pre-open call auction session in the capital market segment on Thursday. Simultaneously, the share price of RIL experienced a decline, settling at Rs. 2,580.
Analysts' expectations were surpassed by the discovered price of Jio Financial Services, as they had initially valued it at Rs. 125-225. These evaluations were primarily based on Jio Financial Services' ownership of approximately 6% treasury stake in Reliance Industries.
JP Morgan analysts projected an implied value of Rs. 189 per share for Jio Financial Services, considering only the treasury shares of RIL. On the other hand, Nuvama Equity Research appraised the treasury shares at Rs. 168 apiece (equivalent to 6% of the market price) based on RIL's closing price on 14 July. Interestingly, they believe that RIL stock will be minimally affected by this demerger and even anticipate a 3-5% upside.
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