Reliance Industries Ltd., owned by billionaire Mukesh Ambani, announced on Friday that it would demerge its financial services division and list it on public exchanges.
The company said in a statement that for every share of Reliance stock that a shareholder owns, they will receive one equity share of Jio Financial Services Ltd (JFSL).
While continuing to assess inorganic growth prospects in the insurance, asset management, and digital broking categories as well as joint venture partnerships, JFSL wants to start up consumer and merchant lending businesses.
‘The Board of Directors of Reliance Industries Ltd (RIL), at its meeting held today (Friday), approved a Scheme of Arrangement amongst RIL, Reliance Strategic Investments Limited (RSIL) and their respective shareholders and creditors in terms of which, RIL will demerge its financial services undertaking into RSIL (to be renamed Jio Financial Services Limited or JFSL),’ it said.
The stock exchanges in India would list JFSL.
Currently, RSIL is a fully owned subsidiary of RIL and is a non-deposit-taking, systemically important non-banking financial organisation registered with the RBI.
According to the plan, shareholders of RIL will exchange one fully paid-up equity share of Rs. 10 in RIL for one equity share of JFSL with a face value of Rs.
Additionally, RIL would transfer to JFSL its shareholding in Reliance Industrial Investments and Holdings Limited (RIIHL), a division of RIL’s financial services enterprise.