Ambani’s Reliance Spin, List Jio Financial Services Plans | Techno Glob


(Bloomberg) — Reliance Industries Ltd. is creating a financial services unit to feed its consumer business, which is helping the retail-to-processing conglomerate grow its profit share.

It will also restructure its engineering and projects departments as it looks to implement major infrastructure investments, including the country’s ambitious 5G network rollout.

Jio Financial Services will be delisted and delisted in India, Reliance said in an exchange filing on Friday. It lends to consumers and merchants based on personal data analytics and will eventually expand into insurance, payments, digital brokerage and asset management.

Each Reliance shareholder will get one share of the new firm for every share of the parent company.

The spinoff complements Reliance chairman Mukesh Ambani’s consumer businesses, which include India’s largest wireless operator with nearly 428 million users, a premier retail chain with over 16,000 stores. Leveraging credit in a country with more than a billion consumers has helped the billionaire e-commerce mogul Amazon.com Inc. Working with helps strengthen ambitions.

“Uniquely Placed”

Jio Financial “will be a technology-driven business that delivers financial products digitally, leveraging the nationwide presence of Reliance’s consumer businesses,” Ambani said. It is “uniquely positioned” to seize these opportunities and attract “millions of Indians to formal financial institutions”.

No timeline has been announced for Jio Financial’s listing. According to the flagship’s post-quarterly earnings filing, regulatory licenses are in place for key businesses.

Rejigs Engineering

The group has its unit Reliance Projects and Property Management Services Ltd. separates the company’s engineering and infrastructure departments and merges them with the parent company.

Reliance will seek to harness its engineering strength through this restructuring for major projects ranging from oil to chemicals, new energy and 5G deployment, the company said in a separate statement late on Friday.

Billionaire Ambani has pledged to invest $75 billion in renewables infrastructure over the next five years, $25 billion in rolling out 5G services across India and another $9 billion in oil-to-chemical businesses.

The company is known for its project execution skills and has built the world’s largest oil refinery complex in western India.

Reliance Profit Beats As Jio, Retail Offset Refining Blues

Reliance, India’s largest company by market value, posted better-than-expected quarterly profit as solid performance in its consumer units offset weakness in its traditional energy business. Its oil refining business has been hit by a new local tax on fuel exports.

–With help from Debjit Chakraborty and Anirban Nag.

(Updates with details on the restructuring of engineering resources starting in the eighth paragraph.)

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