Jio Financial Services, RIL to List a New Entity in Stock Markets Soon

Reliance Industries announced the delisting of its financial services division into a different company and the consequent listing of the new company on stock exchanges. The financial services undertaking's component Reliance Industrial Investments and Holdings Ltd., which is owned by RIL, would be transferred to Jio Financial Services.

Highlights

  • No cash will be exchanged in the demerger instead, shares will be exchanged, according to a statement from RIL.
  • Jio Financial Services intends to introduce a consumer and merchant loan company.
  • Jio Financial also wants to make it possible for shareholders to use the system for entirely digital financial services.

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On Friday, Reliance Industries announced the delisting of its financial services division into a different company and the consequent listing of the new company on stock exchanges. The financial services division of Reliance Strategic Investments will be separated, and the new company, Jio Financial Services, will take its place.

Jio Financial Services Would Issue One Share to Each RIL Shareholder

At Rs 1,387 crore or 0.3% of RIL's overall revenue, the financial services arm's revenue stood as of March 31, 2022. No cash will be exchanged in the demerger; instead, shares will be exchanged, according to a statement from RIL. For each share of RIL they own, shareholders will receive one share of Jio Financial Services.

The financial services undertaking's component, Reliance Industrial Investments and Holdings Ltd., which is owned by RIL, would be transferred to Jio Financial Services. To create sufficient regulatory capital for lending to individuals and businesses, Jio Financial Services will purchase liquid assets. For at least the next three years of commercial activities, the capital buffer will also aid in the incubation of extra financial services sectors like insurance, payments, digital broking, and asset management.

As per RIL, the crucial enterprises have the necessary regulatory permits. Jio Financial Services intends to introduce a consumer and merchant loan company to complement and add to the customary underwriting based on credit agencies. In the insurance, asset management, and digital broking divisions, it will keep evaluating organic development, joint ventures, as well as inorganic prospects. Jio Financial also wants to make it possible for shareholders to use the system for entirely digital financial services. RIL omitted a completion date for the planned demerger since it needs legal and administrative clearances.

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