<p>Billionaire Mukesh Ambani-led Reliance Industries Limited demerged its financial services unit on Thursday, a move, industry people and analysts expect, may lead to disruption in non-banking financial services and fintech businesses.</p>.<p>RIL is India’s largest private player in several sectors including refining, petrochemical and organised retail. Ambani-led firm commercially launched its telecom business in September 2016 under the brand Jio and within three years emerged as the largest player in the sector.</p>.<p>Experts say given the deep pocket, Ambani may bring similar disruption in the financial services sector.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/reliance-retail-approves-share-capital-reduction-1234883.html">Reliance Retail approves share capital reduction</a></strong></p>.<p>“The demerger brought an instant impetus to the market, and it is expected to create rippling effects in the fintech sector with more intense competition,” said Mahesh Shukla, chief executive officer and co-founder of fintech firm PayMe.</p>.<p>A special pre-open session was held on Thursday by the stock exchanges to determine the price of the demerged entity. At the end of the special pre-open call auction session, the market price of Jio Financial Services (JFSL) was derived at Rs 261.85 per share on the NSE, beating the market expectations. Brokerage firms and analysts had pegged the price in the range of Rs 160 to Rs 190.</p>.<p>“The market discovered price of Rs 261.85 per share of Jio Financial Services has come much higher than most brokerages’ estimates. This high price is a reflection of the market’s assessment of Jio Financials’ potential,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.</p>.<p>The wide reach of JFSL through RIL’s other business segments like Reliance Retail has the potential to grow the company at a fast pace for many years to come. The market is discounting this potential, Vijayakumar added.</p>.<p>At a share price of Rs 261.85 apiece, the valuation of Jio Financial Services stands at around Rs 1,66,000 crore or $20 billion. In terms of market capitalisation, Jio Financial Services will be the 32nd largest firm in India. The current market capitalisation of India’s largest fintech firm Paytm is around Rs 54,000 crore.<br /> <br />In a regulatory filing, Reliance Industries announced that the post-demerger cost of acquisition of RIL share is 95.32 per cent and Reliance Strategic Investments Limited (RSIL) share is 4.68 per cent. RSIL will be renamed as Jio Financial Services later.</p>.<p>Considering Wednesday's closing price of Rs 2,840 on BSE, the cost of acquisition of Jio Financial Services share comes at Rs 133. </p>
<p>Billionaire Mukesh Ambani-led Reliance Industries Limited demerged its financial services unit on Thursday, a move, industry people and analysts expect, may lead to disruption in non-banking financial services and fintech businesses.</p>.<p>RIL is India’s largest private player in several sectors including refining, petrochemical and organised retail. Ambani-led firm commercially launched its telecom business in September 2016 under the brand Jio and within three years emerged as the largest player in the sector.</p>.<p>Experts say given the deep pocket, Ambani may bring similar disruption in the financial services sector.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/reliance-retail-approves-share-capital-reduction-1234883.html">Reliance Retail approves share capital reduction</a></strong></p>.<p>“The demerger brought an instant impetus to the market, and it is expected to create rippling effects in the fintech sector with more intense competition,” said Mahesh Shukla, chief executive officer and co-founder of fintech firm PayMe.</p>.<p>A special pre-open session was held on Thursday by the stock exchanges to determine the price of the demerged entity. At the end of the special pre-open call auction session, the market price of Jio Financial Services (JFSL) was derived at Rs 261.85 per share on the NSE, beating the market expectations. Brokerage firms and analysts had pegged the price in the range of Rs 160 to Rs 190.</p>.<p>“The market discovered price of Rs 261.85 per share of Jio Financial Services has come much higher than most brokerages’ estimates. This high price is a reflection of the market’s assessment of Jio Financials’ potential,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.</p>.<p>The wide reach of JFSL through RIL’s other business segments like Reliance Retail has the potential to grow the company at a fast pace for many years to come. The market is discounting this potential, Vijayakumar added.</p>.<p>At a share price of Rs 261.85 apiece, the valuation of Jio Financial Services stands at around Rs 1,66,000 crore or $20 billion. In terms of market capitalisation, Jio Financial Services will be the 32nd largest firm in India. The current market capitalisation of India’s largest fintech firm Paytm is around Rs 54,000 crore.<br /> <br />In a regulatory filing, Reliance Industries announced that the post-demerger cost of acquisition of RIL share is 95.32 per cent and Reliance Strategic Investments Limited (RSIL) share is 4.68 per cent. RSIL will be renamed as Jio Financial Services later.</p>.<p>Considering Wednesday's closing price of Rs 2,840 on BSE, the cost of acquisition of Jio Financial Services share comes at Rs 133. </p>