Reliance Industries Limited (RIL) has announced that July 20, 2023, will be the record date for the demerger of its financial services arm, Reliance Strategic Investments Limited (RSIL). As part of the demerger, the new entity will be renamed Jio Financial Services Limited (JFSL). This development comes after RIL’s earlier plan to demerge its financial services undertaking and list it as JFSL.
The demerger scheme involves Reliance Strategic Investments allotting one fully paid-up equity share of RSIL with a face value of Rs 10 each for every one share of Reliance Industries held as of the record date. The shareholders of the company will be entitled to receive the new equity shares of RSIL.
The effective date of the scheme is set as July 1, 2023. The new entity, JFSL, will focus on providing financial services to consumers, merchants, and other verticals such as insurance, payments, digital broking, and asset management. It aims to leverage Reliance’s technology capabilities to democratize access to financial services for the vast Indian population.
As part of the demerger process, RIL has appointed Hitesh Kumar Sethi as the Managing Director and Chief Executive Officer of RSIL for a period of three years, subject to approvals. Additionally, the board has approved the appointment of Rajiv Mehrishi, Sunil Mehta, and Bimal Manu Tanna as additional directors, along with the proposed inclusion of Isha Ambani and Anshuman Thakur as non-executive directors.
While the demerger of the financial services undertaking is a significant step for RIL, it should be noted that investors who wish to delete their Threads account will still need to delete their entire Instagram account. However, Meta, the parent company of Instagram, is actively working on a solution to decouple Threads from Instagram accounts.
The demerger process will allow RIL to focus on its core business while enabling JFSL to operate independently in the financial services sector. The company aims to attract strategic partners and expand its offerings in the digital delivery of financial products. The announcement of the record date brings clarity to the demerger process and sets the stage for the future operations of Jio Financial Services Limited.
Sources By Agencies