Reliance Industries Shares Surge As NCLT Gives Nod To Jio Financial Services
The new financial arm, Reliance Strategic Investments Ltd., will be later renamed to Jio Financial Services.
Shares of Reliance Industries Ltd. advanced the most in four months after getting approval to spin off the financial services business of the company.
The National Company Law Tribunal, Mumbai, has given its initial nod to the spin-off of the financial services business of RIL.
The new financial arm, Reliance Strategic Investments Ltd., will be later renamed Jio Financial Services. The court has called for a meeting of the shareholders of Reliance on May 2.
RIL had approved a scheme for the demerger of its financial services business in October last year.
Shares of RIL rose 3.82% to Rs 2,320 apiece as of 12:30 p.m., compared to a 1.21% advance in the benchmark Nifty 50. The stock rose as much as 3.86% intraday, the most in over four months since Nov. 28, 2022.
The total traded volume stood at 1.8 times its 30-day average. The relative strength index was at 52.7.
Out of the 37 analysts tracking the company, 32 maintain a 'buy' rating, three recommend a 'hold' and two suggest to 'sell' the stock, as per the Bloomberg data.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 22.9% over the next 12 months.
Source: Bloomberg, Exchange filing