14 July, 2023 – On Thursday, FTSE Russell announced that Reliance Industries’ demerged entity Jio Financial Services (JFS) will be included to three of its indexes, namely the FTSE All-World Comprehensive Factor Index, the FTSE Emerging Comprehensive Factor Index, and the FTSE All-World ex CW Balanced Factor Index, as of July 20.  

In addition, Jio Financial Services will be included in the Russell RAFI Global Index, Russell RAFI Global Large Company Index, Russell RAFI Emerging Index, Russell RAFI Emerging Large Company Index, Russell RAFI Global ex US Index, and Russell RAFI Global ex-US Large Company Index, according to a separate release from FTSE Russell. 

The stock would also be included in the FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index, FTSE Emerging Index, JPMorgan Diversified Factor Emerging Markets Equity Index, FTSE RAFI All World 3000 Index QSR, FTSE RAFI Emerging Index, and FTSE RAFI Emerging Index indices.  

The revisions will be subject to the completion of Jio Financial Services (India)’s demerger from Reliance Industries (India, constituent), according to the FTSE.  

Jio Financial Services

The FTSE highlighted that Jio Financial Services’ IPO date has yet to be confirmed. As a result, it will remain in the index at a static projected price until trading on the exchange begins. “If the trading day is still unknown after 20 business days, FTSE Russell will conduct a review of the company.” 

Jio Financial Services will be listed in 2-3 months, according to a domestic brokerage. Another brokerage estimated JFS’s listing price to be around Rs 175-190. 

According to FTSE, on the ex-entitlement date, a capital payback equal to the entitlement value of Jio Financial Services will be applied to Reliance Industries. The number of Jio Financial Services shares is calculated on the basis of one Jio Financial Services share for every one Reliance Industries share held, according to FTSE. 

Reliance Industries recently gained NCLT approval for the demerger of its financial services unit into Reliance Strategic Investments (renamed Jio Financial Services). The scheme went into effect on July 1st. The record date would be July 20. 

In the instance of Reliance Industries’ investors, the NSE announced this week that the oil-to-telecom company’s futures and options (F&O) contracts for the next three months will expire on July 19, following the July 20 record date for Jio Financial’s demerger. 

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