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Axis Securities had recommended investors to buy Reliance Industries before the record date of July 20 and believe it to be a more economical way to buy Jio Financial Services (JFSL) which is likely to list at Rs 160/share (1x RIL’s treasury stock value).

“Post demerger, we value Jio Financial Services at the treasury stock valuation of Rs 1,08,597 crore (1x RIL’s treasury stock valuation). The company’s total outstanding shares stand at 676.6 crore, implying each share’s valuation would be Rs 160/share. The shareholding pattern will be the same as that of Reliance Industries Ltd. We value JFSL at treasury stock valuation as the business model of the company is yet to be announced. Even if the entire allocation is not directed towards JFSL, the company might be able to leverage the same for regulatory funds,” Axis Securities said.

RIL has received NCLT approval for the demerger of Jio Financial Services Ltd and has set July 20 as the record date. The ratio for demerger is set at 1:1. For every share of RIL held before the record date, the company will award 1 share of JFSL.

The financial business of Reliance Strategic Investments will list separately and will be named JFSL post-listing. The JFSL is expected to get listed in the next 2-3 months.

The company has announced that it will release Q1FY24 results on July 21. The stock is currently trading at Rs 2,751/share and has gained 7.9 per cent over the past month. With RIL’s financial business moving to JFSL, it will own a 6.1 per cent stake in Reliance Industries, Axis Securities said.