Mukesh Ambani's firm earns Rs 69,990 crore in just 5 days ahead of Rs 1,50,000 crore move

Mukesh Ambani's Reliance Industries (RIL) has scheduled the demerger of its financial services arm, Reliance Strategic Investments, on July 20. RSIL will then be renamed Jio Financial Services (JFSL). Since the announcement of the news last week, there has been tremendous growth in the market cap of the company.

The RIL has earned Rs 69,990.57 crore in just five days ahead of the demerger. After this, the market capitalization of Reliance Industries reached Rs 18,53,033.73 crore. The share price of RIL was Rs 2,751 on Friday, July 14.

Jio Financial Services (JFS) may become the fifth-largest financial services company in terms of net worth following the demerger, according to a recent note from Macquarie. Reliance Strategic Investments will allot one fully paid-up equity share of RSIL of face value of Rs 10 each, for every one share of Reliance Industries as of the record date. 

“We value JioFS in the range of Rs 90,000-150,000 crore that implies Rs 134-224 per share in RIL’s sum of the parts (SoTP). We incorporate Rs 179 per share as base case valuation for JFS in our SoTP,” Jefferies said. According to BT, the business is estimated to have an overall net worth of over Rs 1,50,000 crore, including Reliance Industries shares worth roughly Rs 1,10,000 crore. 

The company earlier announced that it has appointed Hitesh Kumar Sethia as managing director and CEO of the new organisation. While Isha Ambani, the daughter of Mukesh Ambani, has been appointed as a non-executive director.

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