Jio Financial demerger: RSIL listed at Rs 261.85 a share, much higher than estimates

Reliance Strategic Investments (RSIL) shares were trading at 261.85 rupees at the end of the stock exchange’s special session, well above analyst expectations of 160-190 rupees.
RSIL He plans to branch off from RIL on July 20th. The company will be renamed Jio Financial Services (JFS) and listed on the stock exchange at a later date.
RIL shares were listed on the BSE at Rs 2,589 per share, while the previous closing price was Rs 2,853 per share.
“Now that the RIL is settled at 2,589 rupees, will Nifty and Sensex also drop?” Technically no. “To avoid impacting the index, RSIL will be listed as Nifty’s 51st stock and will be weighted accordingly, so the weight and price of Reliance and JFS will be the same as Reliance as of yesterday’s close,” trader Kirtan A. Shah wrote on his LinkedIn profile.
Shah added that Nifty Reliance’s actual price as of yesterday’s closing price at 10:00 a.m., as well as the remaining 49 stocks and live prices, are taken into account. After the pre-opening ended at 10:00 a.m., only Reliance industry stocks traded, while the JFS remained unchanged. Since the JFS remains constant, RIL fluctuations after 10:00 am only affect NIFTY, as on normal days. Three days after inclusion, JFS will be removed from the index as a separate entity and its Reliance weight will be rebalanced. Shah added that this will happen for all indices in which Reliance participates. Allocation and listing dates have not yet been announced.
Under the terms of the agreement, RIL shareholders will receive one share of the spun-off Reliance Strategic Investments for each share held in the conglomerate.
However, investors should be aware that this new stock is not yet available for trading. It will remain in the Nifty 50 at a fixed price until the listing date is announced and will be removed from the Nifty 50 three days after the listing date.