Reliance Industries has announced that it is demerging its financial services, Reliance Strategic Investments (RSIL) and renaming it as Jio Financial Services. The decision is pending the approval of creditors and shareholders. Reliance Industries has convened a meeting for creditors and their shareholders on March 2 to seek approval for demerger.
The conglomerate’s board had given its approval for the demerger in November last year. The RIL subsidiary is an RBI-registered non-banking financial company. The shareholders of Reliance Industries will receive one share of the newly demerged entity. KV Kamath will be the non-executive chairman of the demerged entity.
Post the demerger, shares of Jio Financial Services will be listed on both the NSE and BSE will see its share capital rise from Rs 15,005 crore to Rs 232.1 crore and the paid-up share capital will go up to Rs 6,766 crore from Rs 2.33 crore. RSIL reported a combined revenue of Rs 1,535.6 crore in FY22 and had a combined asset base of Rs 27,964 crore.
Shares of RIL rallied 4.31% today and closed at Rs 2,330.95 at the end of the week's closing.
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