The financial services arm will now be renamed to Jio Financial Services Limited and will undertake a host of financial services including setting up a life insurance as well as one general insurance company and the shareholders of Reliance Industries will receive one share of Jio Financial Services for every share held by them in the parent company.
The shares of the company will be listed on both BSE and the National Stock Exchange
Mumbai:
The shareholders of Reliance Industries Limited along with its secured and unsecured creditors have approved the demerger of the company’s financial services business, Reliance Strategic Ventures.
The financial services arm will now be renamed to Jio Financial Services Limited and will undertake a host of financial services including setting up a life insurance as well as one general insurance company.
The shareholders of Reliance Industries will receive one share of Jio Financial Services for every share held by them in the parent company.
The shares of the company will be listed on both BSE and the National Stock Exchange.
RIL secured 99.9 per cent of votes in favour of the demerger, billionaire Mukesh Ambani-led company said in a release on May 3.
In October last year, while announcing the demerger, RIL chief managing director (CMD) Mukesh Ambani had said, “JFS will be a truly transformational, customer-centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians.”
According to Jefferies Research, all necessary approvals for the listing of shares of JFS should be in place by September. ”JFS will commence lending activities immediately and proceed for regulatory approvals for asset management, life and general insurance. Regulatory approvals are expected to take 12-18 months.”
Currently, RSIL is a wholly-owned subsidiary of Reliance and is an RBI-registered non-deposit-taking systemically important non-banking financial company.
Reliance has named KV Kamath, former MD and CEO of ICICI Bank, as the non-executive chairman of JFS.
In October last year, while announcing the demerger, Reliance chairman Mukesh Ambani had said, ”JFS will be a truly transformational, customer-centric and digital-first financial services enterprise offering simple, affordable, innovative and intuitive financial services products to all Indians.”
Reliance’s financial services business reported combined revenue of Rs 1,535.6 crore in the financial year 2022 and had a combined asset base of Rs 27,964 crore.
According to brokerage firm Macquarie, Jio Financial Services will be valued at more than Rs 1.52 lakh crore and become the fifth largest financial services firm in India.