BENGALURU (Reuters) -Shares of India’s Reliance Industries started trading on Thursday in a special session aimed at determining the share value of Jio Financial Services, its demerged financial services unit.
Reliance’s stock had closed at 2,841.85 rupees on Wednesday.
India’s two main stock exchanges are holding a “pre-open call auction” session for Reliance between 9:00 a.m. to 10.00 a.m. IST (0330-0440 GMT).
A share price for Reliance Strategic Investments, which will be renamed Jio Financial Services (JFS), will be determined by calculating the difference between Reliance’s last close and the stock’s settling price at the end of the special session.
Analysts have estimated JFS will be valued at between 160 rupees and 190 rupees per share.
Reliance’s shares will trade at the new price after the special session on Thursday.
JFS stock will be included in major indexes, including India’s benchmark Nifty 50, but will not trade until it is listed.
The listing date is expected to be announced at Reliance’s forthcoming annual general meeting.
Shares of Reliance have surged 8% since the company announced the record date for the demerger on July 8. It announced the demerger last October.
The stock is up 11.6% so far this year, outpacing a 9.5% rise in the Nifty 50.
(Reporting by Chris Thomas in Bengaluru; Editing by Savio D’Souza)
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