How Reliance shareholders will be rewarded with Jio Financial Services shares after the breakup | Techno Glob

Billionaire Mukesh Ambani-led Reliance Industries will demerge its financial services business and list it separately on stock exchanges.

“The Board of Directors of Reliance Industries Limited has approved a scheme of arrangement between RIL, Reliance Strategic Investments Limited (“RSIL”) and their respective shareholders and creditors under which RIL will divest its financial services liability to RSIL (to be renamed Jio Financial Services Limited) Jio Financial Services will be listed on Indian stock exchanges. RSIL is currently a 100 percent subsidiary of RIL and a non-depository systemically important (ND-SI) non-banking financial company registered by RBI,” Reliance Industries said in a press release.

RIL’s investment in Reliance Industrial Investments and Holdings Limited, part of RIL’s financial services commitments, will be transferred to JFSL. RIIHL is the ultimate beneficiary of 6.1% RIL shares through its stake in Petroleum Trust and Reliance Services and Holdings Limited.

Under the demerger scheme, Jio Financial Services will acquire liquid assets to provide adequate regulatory capital for lending to consumers, merchants and others and to incubate other financial services such as insurance, payments, digital brokerage, asset management. in years of business operations.

Regulatory licenses are available for major businesses, the country’s most valuable company said.

“With global growth drivers, India’s financial services sector is poised to undergo digital transformation. The sector offers a large, developed and growing addressable market, particularly for product categories targeting retail and small businesses. JFSL and its subsidiaries (“JFS”) Reliance Technology leverages its capabilities and focuses on digital delivery of financial products to democratize financial services for 1.4 billion Indians,” added the Mumbai-based company.

Reliance is designing and developing a vibrant digital financial services platform through various digital applications. Reliance has developed best-in-class applications with superior customer engagement performance and differentiated value propositions in respective categories. The current footprint covers more than 20 million consumers, Reliance said.

How Reliance shareholders will be rewarded with Jio Financial Services shares:

RIL shareholders will get one share of Jio Financial Services for every share of Reliance Industries, allowing for an upfront valuation. Jio Financial Services provides shareholder engagement on a well-capitalized, attractive, fully digital financial services platform tapping high-growth financial services businesses.

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