On April 3, shares of Reliance Industries Ltd. increased by around one percent as a result of favorable brokerage comments. Jefferies raised its target price on the company’s stock, which contributed to the positive sentiment. The investment bank has not changed its ‘buy’ recommendation on RIL; however, it has increased its target price on shares to Rs 3,100, up from Rs 3,060.
Jefferies expects consumer and business lending opportunities in Jio Financial Services and NLF.
Nevertheless, early gains were lost when investors cashed in on the large profits achieved on Friday and sold their shares. After the announcement made by the firm led by Mukesh Ambani on Friday that secured creditors, unsecured creditors, and shareholders will be meeting on May 2 to ratify the planned demerger of Reliance Strategic Ventures, the stock saw a rally of almost 5 percent.
On the BSE, shares of the oil-to-telecom company were trading at Rs 2323.85 at 9:25 am, which was a decrease of 0.3 percent from the previous close.
The subsidiary of RIL that provides financial services will become known as Jio Financial Services after the approval was obtained and the name change was put into effect.
Jefferies views Jio Financial Services as a potential to participate in the consumer and commercial loan markets, in addition to the Non-Loan Finance sector. It brought to light the fact that the demerger and listing of the subsidiary can take up to six months, and that the construction of the franchise may be done in stages.