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Mumbai: Reliance (RIL) said the creation of an independent company focusing on financial services will help in attracting strategic partners and investors to fuel growth plans. The company is carving out its financial services business and merging it with Reliance Strategic Investments (to be renamed Jio Financial Services), before listing it.
RIL’s board had approved the demerger last year and it has now called a shareholder and creditor meeting on May 2 to get their nod. Reliance shareholders will get one share of Jio Financial for every share held in the company. RIL said an independent financial services company will have a higher leverage for growth and will unlock value for its shareholders.
The financial services unit will own 6% in RIL after the demerger. RIL’s financial services business includes Reliance Industrial Investments and Holdings, Reliance Payment Solutions, Reliance Retail Finance, Jio Information Aggregator Services, Reliance Retail Insurance Broking and Jio Payments Bank.
RIL said the transfer of its investment in Jio Payments Bank will be given effect to in accordance with the approval granted by the RBI. RIL’s financial services business and that of Reliance Strategic Investments had a combined revenue of Rs 1,536 crore in fiscal 2022, while their total asset base was Rs 27,964 crore.
RIL’s board had approved the demerger last year and it has now called a shareholder and creditor meeting on May 2 to get their nod. Reliance shareholders will get one share of Jio Financial for every share held in the company. RIL said an independent financial services company will have a higher leverage for growth and will unlock value for its shareholders.
The financial services unit will own 6% in RIL after the demerger. RIL’s financial services business includes Reliance Industrial Investments and Holdings, Reliance Payment Solutions, Reliance Retail Finance, Jio Information Aggregator Services, Reliance Retail Insurance Broking and Jio Payments Bank.
RIL said the transfer of its investment in Jio Payments Bank will be given effect to in accordance with the approval granted by the RBI. RIL’s financial services business and that of Reliance Strategic Investments had a combined revenue of Rs 1,536 crore in fiscal 2022, while their total asset base was Rs 27,964 crore.
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