Reliance Industries Limited (RIL) Chairman and Managing Director Mukesh Ambani on Friday, while announcing the conglomerate's fourth-quarter and year-end results, said the company's decision to demerge its financial services arm and list a new entity presents investors an opportunity get in the ground floor.
RIL will this year demarge its financial services arm and list the new entity, Jio Financial Services Ltd.
Secured creditors, unsecured creditors and shareholders of RIL will meet on May 2 to approve the proposed demerger of Reliance Strategic Ventures. Post the approval, the unit, which is the financial services subsidiary of the oil-to-telecom conglomerate, will be renamed Jio Financial Services Ltd.
"This year ,we have proposed to demerge our financial services arm and list the new entity 'Jio Financial Services Ltd'. This gives our shareholders an opportunity to participate in an exciting new growth platform from inception," Ambani said in a statement.
Reliance Industries approved the demerger of the financial services arm in October 2022. Veteran Banker KV Kamath will be the non-executive chairman of the demerged entity.
Following the demerger, shares of Jio Financial Services will be listed on both BSE and NSE with its share capital rising to Rs 15,005 crore from Rs 232.1 crore, while the paid-up share capital will go up to Rs 6,766 crore from Rs 2.33 crore.
As per the earnings report released on Thursday, RIL's financial services segment brought in a consolidated revenue of Rs 134 crore, down from Rs 280 crore during the December quarter.
The Financial Services segment comprises of management and deployment of identified resources of the Company to various activities including non-banking financial services, insurance broking, etc.
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