Reliance Industries share price: Reliance Industries stock price has been found at Rs 2580, as the pre-open auction ended at 9.45 am. This comes at a 9.2% discount from yesterday’s closing price of Rs 2,841.85 on the NSE. The pre-open auction was conducted for price discovery of RIL stock without the inclusion of the Jio Financial Services arm, which is now valued at Rs 261.85.
Understanding the pre-open auction session
In a bid to determine the market’s valuation for Reliance Industries’ demerged entity Jio Financial Services (JFS), a pre-open call auction is scheduled on July 20, during 9-10 am. This session aims to facilitate price discovery, which is crucial in establishing the initial trading range for JFS shares. Regular trading in RIL shares might not be available till 10 am.
During this pre-open session, traders will have the opportunity to gauge the street’s sentiment and assess the fair value of Reliance Industries post-demerger. The resulting difference between RIL’s pre-demerger closing price and the discovery price during the pre-open auction will be used to calculate the initial stock price of Jio Financial Services. For instance, if RIL’s closing price on July 19 stands at Rs 2,000 per share and the pre-open auction settles at Rs 1,800 per share the following day, then JFS shares will be valued at Rs 200 apiece.
“This derived price of Jio Financial will be considered on a daily basis for Nifty index value computation until it gets listed on the bourses. Once Jio Financial shares get listed on exchanges, the stock will remain as the 51st stock in Nifty 50 index for three days. This will help volatility to settle in and let investors adjust their portfolios,” said Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.